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Reforms in the Industrial Sector

As we saw earlier, regulations in the industrial sector were in four ways:
  1. License had to be obtained by every entrepreneur to start a new industry, close a firm or even increase the production.
  2. Some goods were exclusively reserved for the small scale industries
  3. The private sector was not allowed in many sectors
  4. Prices of certain commodities and distribution of certain industrial products was controlled by the government.
The industrial reform policies brought in a lot of changes. Following are the reforms that were introduced in 1991:
  1. License was abolished for most of the industries. The only industries which required a license were alcohol, cigarettes, hazardous drugs and chemicals, pharmaceuticals, aerospace, explosives and electronics.
  2. The industries which were handled by the public sector were defense equipments, atomic energy generation and railway transports.
  3. Dereservation of many of the goods produced by the small scale industries happened.
  4. In many of the industries, the market was allowed to fix the price and the government did not have a hand in the price fixing.

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