Question : The main objective of the Industrial Policy of 1991 was to:
Option 1: Promote public sector enterprises
Option 2: Encourage import substitution
Option 3: Liberalize the Indian economy
Option 4: Promote foreign direct investment
Correct Answer: Liberalize the Indian economy
Solution : The correct answer is (c) Liberalize the Indian economy
The main objective of the Industrial Policy of 1991 was to liberalize the Indian economy. The policy was introduced by the government of India in response to the economic crisis of 1991. The goal of the policy was to reduce government control over the economy and promote private sector investment.
The policy included a number of measures to liberalize the economy, such as:
Reducing the number of industries reserved for the public sector
Relaxing licensing requirements for private sector investment
Deregulating the financial sector
Reducing import tariffs
The Industrial Policy of 1991 was a major turning point in the history of the Indian economy. The policy helped to promote economic growth and led to a significant increase in foreign investment.
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