Which one of the following is NOT a feature of the New Industrial Policy, 1991?
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1 mark, −0.333Indian EconomyPlanning, reforms and liberalisationThe 1991 economic reformsModerateabout 1 min
IIT JAM 2021 Question 5: Planning, reforms and liberalisation
Answer and worked solution
Answer: (D)
The New Industrial Policy, 1991 liberalised industry by abolishing licensing, disinvesting in public enterprises and opening up trade, and it eased rather than tightened foreign technology agreements.
So restrictions on foreign technology agreements are the opposite of the policy's thrust, making (D) the item that is NOT a feature.
The trap: (A) Abolition of industrial licensing
Abolition of licensing is a central feature of the 1991 policy; the exception is the technology-agreement restriction, which runs against liberalisation.
Planning, reforms and liberalisation has come up 62 times in 6 exams since 2010.
What this question tests
This question is on The 1991 economic reforms, part of Planning, reforms and liberalisation in Indian Economy.
The liberalisation, privatisation and globalisation reforms that ended the licence era.
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Question from the IIT JAM 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.