CHP 9 ECONOMIC POLICY OF INDIA 1991 FYJC

Main objectives of economic policy

1) Plunge Indian economy into arena of globalization(globalization)

2) Bring down rate of inflation (internal)

3) Higher economic growth (general point)

4) Build sufficient foreign exchange reserves (trade)

5) Increase participation of private sector (privatization)

Features of economic policy

1) Delicensing

2) Abolition of Monopolies and Restrictive Trade Practices Act

3) Encouragement to small sector

4) Reforms in insurance sector

5) Reforms in industrial sector

Meaning of liberalization

producers, consumers and owners of FOP are free to take decision to promote their self interest

Measure taken for liberalization

1) Flexibility of Interest rate

2) Abolition of Monopolies and Restrictive Trade Practices

3) Reforms in FERA

4) Investments in infrastructure

5) Encouragement to foreign technology

Meaning of Privatization

Transfer of ownership from public to private sector

Measures of Privatization

1) Disinvestment

2) De reservation Policy

3) Establishment of Board of Industrial and financial Reconstruction(BIFR)

4) Creation of National Renewal Board

5) Navaratna status

Name three public sector units given Navaratna status

1) Indian Oil Corporation

2) Hindustan Petroleum Corporation Ltd

3) Bharat Petroleum Corporation Ltd

Meaning of globalization

Integrating the economy of a country with the global economy

Measures taken for Globalization

1) Removal of Quantitative Restrictions

2) Convertibility of Rupee

3) Encouragement to foreign capital

4) Foreign Collaborations

5) Encouragement to Exports

Major Achievements of economic policy

1) Revolution in IT sector

2) Improvement in financial facilities

3) Improvement in educational standards

4) Increase in exports

5) Solves the problem of Scarcity

Major Failures of Economic Policy

1) Lack of self sufficiency

2) Adverse effect on domestic market

3) Affects poor farmers

4) Unhealthy competition

5) Unemployment