what are the features of economic policy pursued under planning till 1991
Featurs of economic policy 1991:
- Dependence on public sector:
Prior to 1991 , there was heavy reliance on the public sector. It was assumed that only the govt. can be instrumental in realizing the objective of social justice and equity.
In industrial policy 1956, there was 17 industries reserved for public sector as against 12 industries for private sector.
- Inward looking trade strategy:
This was another important feature of economic policy prior to 1991. It implied basic reliance on import substitution and protecting domestic industries from foriegn.
- Controlled development of private sector:
The state or govt. held complete control over the private sector through a system of licenses. No new industries was allowed unless alicense was obtained from the govt..License was required even for expansion of production or for diversifing production.
- Protection to small scale industries:
The production to no. of products was reserved for small scale industries. They were also gn concessions such as lower excersive duty and bank loans @ lower interest rates. These industries cannot compete with big industrial firms, it is obvious that development of small scale industries shld be protected.
- Self sufficiency in food grains:
Due to technical reforms like green revolution, india became self sufficient on one hand and also able to create markettable surplus which made our agriculture commercial in nature.
- Diversification of industries;
Our industries became mor diversified compared to a situation @ independence. Industrial sector was not confined only to jute, tea, cotton, etc.,. We now stared producing consumer goods, electricity goods,etc.,. Automobile industry also startd growing.