Question

Which of the following statements is true about Industrial Policy since 1991?

A Only 5 industries related to security, strategic and environmental concerns require industrial License Correct Answer Incorrect Answer
B An investor need not file an industrial entrepreneur Memorandum Correct Answer Incorrect Answer
C There is no reservation of products for production in small scale sectors Correct Answer Incorrect Answer
D The number of industries reserved for public sector has been enhanced Correct Answer Incorrect Answer

Solution

• There are only 4 industries at present related to security, strategic and environmental concerns, where an industrial license is currently required - Electronic aerospace and defense equipment, Specified hazardous chemicals, Industrial explosives, Cigars and cigarettes of tobacco and manufactured tobacco substitutes. Hence, A is incorrect. • Industrial Entrepreneur Memorandum (IEM) is required by the government for statistical purposes only, similar to Foreign Assets and Liabilities statement filed by the enterprise to the RBI. Through IEM, the government conduct a limited post facto check to see whether the proposed manufacturing activities require an industrial license or not. Hence, B is correct. • The new industrial policy announced on 24th July, 1991 as part of the process of economic reforms has stated that the policy of reservation of products in the small-scale industries sector will continue. Hence, C is incorrect. • Government stakes in Public Sector Enterprises were reduced to enhance their efficiency and competitiveness. Hence, D is incorrect. • Therefore, B is the right answer.

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