UPSC Exam  >  UPSC Questions  >   Which of the following product categories wa... Start Learning for Free
Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991?
Aerospace
  • Defence
  • Electronics
  • Jute industries
    Select the correct answer using the code given below.
    • a)
      4 only
    • b)
      1, 2 and 3 only
    • c)
      2 and 4 only
    • d)
      1, 2, 3 and 4
    Correct answer is option 'A'. Can you explain this answer?
    Most Upvoted Answer
    Which of the following product categories was/were exempted from Indu...
    Exemption of Product Categories from Industrial Licensing under NEP 1991

    Introduction:
    The New Economic Policy (NEP) of 1991 was a set of economic reforms introduced by the Government of India to liberalize, privatize and globalize the Indian economy. One of the key features of the NEP was the abolition of the industrial licensing system.

    Exemption of Product Categories:
    Under the NEP, several product categories were exempted from industrial licensing. These included:

    1. Jute Industries:
    Jute is an important cash crop in India and the jute industry is a major employer in the country. The NEP exempted jute industries from industrial licensing to encourage their growth and development.

    2. Defence:
    The defence sector was exempted from industrial licensing to promote self-sufficiency in defence production and reduce dependence on imports.

    3. Electronics:
    The electronics industry was exempted from industrial licensing to encourage the growth of the sector, which was seen as a key driver of economic growth in the future.

    4. Aerospace:
    The aerospace industry was exempted from industrial licensing to encourage the growth of the sector, which was seen as an important area for technological development and innovation.

    Conclusion:
    The exemption of these product categories from industrial licensing was a key component of the NEP, which aimed to liberalize the Indian economy and make it more competitive. The move was widely welcomed by businesses and investors, who saw it as a major step towards creating a more business-friendly environment in India.
    Free Test
    Community Answer
    Which of the following product categories was/were exempted from Indu...
    India Economy for global exposure for the first time. In this New Economic Policy government reduced the import duties, opened the reserved sector for the private players, devalued the Indian currency to increase the export. This is also referred to as the LPG Model of growth.
    • The thrust of the New Economic Policy has been towards creating a more competitive environment in the economy as a means to improving the productivity and efficiency of the system. This was to be achieved by removing the barriers to entry and the restrictions on the growth of firms.
    • One of the major steps was the removal of Industrial Licensing and Registration. Previously private sector had to obtain a license from Govt. for starting a new venture. In this policy, the private sector has been freed from licensing and other restrictions.
    • Industries licensing was done away with except the following industries:
      • Liquor/Alcohol
      • Cigarette
      • Defence equipment
      • Electronics
      • Aerospace
      • Industrial explosives
      • Drugs and pharmaceuticals
      • Hazardous chemicals
    • Other steps included Privatisation i.e permitting the private sector to set up industries which were previously reserved for the public sector and globalization steps like reduction in tariffs, partial convertibility of Indian currency, permitting foreign investments etc.
    Explore Courses for UPSC exam

    Similar UPSC Doubts

    Top Courses for UPSC

    Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?
    Question Description
    Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?.
    Solutions for Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
    Here you can find the meaning of Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following product categories was/were exempted from Industrial licensing under New Economic Policy (NEP),1991? Aerospace Defence Electronics Jute industries Select the correct answer using the code given below.a)4 onlyb)1, 2 and 3 onlyc)2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
    Explore Courses for UPSC exam

    Top Courses for UPSC

    Explore Courses
    Signup for Free!
    Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
    10M+ students study on EduRev