Mention the objectives of new Industrial Policy 1991. Describe the role of globalisation in achieving these objectives.

The main objectives of the new Industrial Policy 1991 are mentioned below:

• Abolition of industrial licensing policy

• Free entryto foreign technology in India

• Providing access to capital market

• Opentrade between countries

• Abolition of the phased manufacturingprogramme.

The major objectives of globalization were:

• Opening of the economy toforeign direct investment by providing facilitiesto foreign companies to invest in different fields of economic activity in India. This fulfilled two objectives of new Industrial policy which are open trade between countries and providing access to capital market.

• Removingrestrictions and obstacles to the entry of multinationalcompanies in India. This fulfilled two objectives of the new Industrial policy which are open trade between countries and providing access to capital market.

• Allowing Indian companies to enter into foreign collaborationin India and also encouraging them to set upjoint-ventures abroad. This largely helped to fulfill the open trade policy between the countries.

Thus it is clear that globalization helped in actually practically executing out the objectives of new Industrial policy.