Question

According to New Industrial Policy, 1991, the following changes have been made:
1. foreign equity holding need not be tied by foreign technology agreements
2. majority foreign equity holding upto 51 percent will be allowed for trading companies engaged in export activities
3. a Specially Empowered Board will be constituted to negotiate with the international firms
4. The payment of dividends will be monitored by the RBI
Which is correct?

• A. 1 and 3
• B. 2 and 4
• C. 3 only
• D. All the above

Answer 1

The correct option is D All the above

New Industrial Policy was adopted by the Government of India in the year of 1991. It was adopted in order to create a more freer and competitive economy. According to New Industrial Policy, 1991, the following changes have been made:

1. foreign equity holding need not be tied by foreign technology agreements
2. majority foreign equity holding upto 51 percent will be allowed for trading companies engaged in export activities
3. a Specially Empowered Board will be constituted to negotiate with the international firms
4. The payment of dividends will be monitored by the RBI