Reforms in the Industrial Sector
As we saw earlier, regulations in the industrial sector were in four ways:
- License had to be obtained by every entrepreneur to start a new industry, close a firm or even increase the production.
- Some goods were exclusively reserved for the small scale industries
- The private sector was not allowed in many sectors
- Prices of certain commodities and distribution of certain industrial products was controlled by the government.
- 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.
- The industries which were handled by the public sector were defense equipments, atomic energy generation and railway transports.
- Dereservation of many of the goods produced by the small scale industries happened.
- 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.