Question

Which one of the following is NOT a feature of the New Industrial Policy, 1991?

• A. Abolition of industrial licensing
• B. Privatisation of public industries
• C. Removal of restrictions on foreign trade
• D. Restrictions on foreign technology agreements

Hint:

Remember — 1991 reforms focused on Liberalization, Privatization, and Globalization (LPG). So, any option that suggests restriction or control is incorrect.

Answer 1

The Correct Option is D

Step 1: Understanding the New Industrial Policy, 1991.
The 1991 policy aimed at liberalization, privatization, and globalization to improve efficiency and competitiveness in the Indian economy.
Step 2: Key features.
It included abolition of industrial licensing, encouragement of private sector participation, and removal of restrictions on foreign trade and technology.
Step 3: Identifying the incorrect feature.
Option (D) — “Restrictions on foreign technology agreements” — contradicts the policy’s intent, which was to promote such collaborations, not restrict them.
Step 4: Conclusion.
Hence, the incorrect statement and thus the correct answer is (D).