BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Necessity for change After 1991, the market forces have become turbulent. As a result, business enterprises have to continuously modify their operations.

Detailed explanation-2: -The New Industrial Policy, 1991 had the main objective of providing facilities to market forces and to increase efficiency. The government allowed Domestic firms to import better technology to improve efficiency and to have access to better technology.

Detailed explanation-3: -Solution : Liberalisation, Privatisation and Globalisation were the economic changes initiated by government under the industrial policy 1991.

Detailed explanation-4: -Answer: Economic changes initiated by the government under the Industrial Policy, 1991 (i) The government reduced the number of industries under compulsory licensing to six. (ii) The role of public sector was reduced. It was now limited only to tom industries of strategic importance.

Detailed explanation-5: -Finally, the policies in 1991 began the process of economic liberalization. There was a lowering of tariffs and import taxes, promotion of private investment, an overall lowering of taxes, an increase in foreign investment and FDI, deregulation of markets, etc.