Answer:

ADVERTISEMENTS:

Here we detail about the seven important features of new economic policies under economic reforms, i.e., (1) Liberalisation, (2) Privatisation, (3) Globalisation of the Economy, (4) New Public Sector Policy, (5) Modernisation, (6) Financial Reforms, and (7) Fiscal Reforms.

1. Liberalisation:

The new economic policy has made provision for liberalizing the economy against unnecessary controls and regulations. Here the liberalisation simply indicates liberating the trade and industry from unwanted restrictions. In order to liberalise the economy and to bring transparency in the policy, the New Industrial Policy, 1991 has abolished the system of industrial licensing for all industrial undertaking, irrespective of the level of investment, except for a short list of 18 industries related to security and strategic concern, social reasons, hazardous chemicals and overriding environmental concerns and items of elitist consumption.

The New Industrial Policy has liberalized the industries in the following manner: