New Industrial Policy,1991

Before 1991, starting a factory in India could mean years of waiting for a government licence just to manufacture more of what your own factory already made. One policy document, issued in the middle of a balance-of-payments crisis, tore that requirement up for most industries almost overnight. That single decision is why every business you interact with today looks so different from how it would have looked one generation earlier.

In two minutes

The New Industrial Policy of 1991 dismantled most of India's licence-permit system for industry, opened the economy to greater private and foreign investment, and reduced the public sector's exclusive reserved role, marking the start of India's economic liberalisation.

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