2.3. New Industrial Policy, 1991

India’s New Industrial Policy (NIP) announced in July 1991 was radical compared to its earlier industrial policies in terms of objectives and major features. It emphasized on the need to promote further industrial development based on consolidating the gains already made and correct the distortion or weaknesses that might have crept in, and attain international competitiveness. The liberalized Industrial Policy aimed at rapid and substantial economic growth, and integration with the global economy in a harmonized manner.

It stated that ‘the government will continue to pursue a sound policy framework encompassing encouragement of entrepreneurship, development of indigenous technology through investment in research and development, bringing in new technology, dismantling of the regulatory system, development of the capital markets, and increased competitiveness for the benefit of common man’.