Industrial Development and Regulation Act 1951 notes

Posted on 04-05-2016        By ADMIN

Industrial Development and Regulation Act 1951 notes Industrial ( Development & Regulation) Act, 1951 was enacted for the purpose of Recognising, developing and controlling “Seheduled Industries” in order to achieve the object.It was also decided to introduce - licencing for proper industrial growth, takeover of sick industries, nationalize certain industries. etc. However, it was observed that compulsory licencing - was actually stopping industrial growth instead of promoting it. Also, many Public Sector Undertakings ( PSU ) became sick & were causing a great drain on our economy, hence in the year 1991 a new industrial policy was introduced in order to reduce the difficulties involved in licencing provisions. Some of the provisions of the 1991 Industrial policy are as under. New Industrial Policy, 1991 This was introduced by the Govt. of India - at the time when the Country was facing a severe “ foreign exchange ” resource crunch. The objectives of this Policy were as follows :- (i) To build - on the gains already made. (ii) To correct - the weaknesses which have crept in. (iii) To maintain - a sustained growth in productivity & gainful employment. (iv) To attain - international competition. As a result of this policy - the Govt. initiated a series of measures - in the areas of industrial licencing, foreign investments, foreign technology agreements, public sector policy & in the MRTP Act. The thrust of the new Industrial Policy, 1991 - has been to inject a new dosage of competition - in order to produce greater industrial efficiency and industrial competitiveness. The domestic competition was also induced - by de-licencing of industries & liberalizing the policy - related to foreign direct investment. Major reforms in Indian Industry - since 1991 includes the following :- (i) Large scale reduction - in the scope of industrial licencing. (ii) Simplification of - procedural rules and regulations. (iii) Reduction of areas - exclusively reserved for the public sector. (iv) Disinvestment of equity - in selected PSUs. (v) Enhancing the limits - of foreign equity participation - in domestic industrial undertakings. (vi) Liberalisation - of trade & exchange rate policies. (vii) Rationalization & reduction - of Customs & Excise Duties & Personal & Corporate income-tax (viii) Banking Sector Reforms - also were introduced. (ix) Capital Market Reforms - took place.

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