Which of the following points about the objectives of Industrial Policy 1991 are correct?
A. Gainful employment
B. Attain international competitiveness
C. Maintain a sustained growth in productivity
D. Immediately provide better economic opportunities to people
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, B, C only
The new Industrial Policy of 1991 opened the Indian economy through liberalisation, privatisation and globalisation (LPG).
(A) Gainful employment — Correct. The policy aimed to maintain growth in productivity and gainful employment.
(B) Attain international competitiveness — Correct. Indian industry was to become able to compete in world markets.
(C) Maintain a sustained growth in productivity — Correct. Steady growth in productivity was one of its major objectives.
(D) Immediately provide better economic opportunities to people — Incorrect. The policy aimed at sustained growth over time, not at quick gains for people.
Note: This question is taken from the pre-rationalised NCERT book. The latest edition (2026-27) does not have this part. An extract of the pre-rationalised NCERT book is given below for the benefit of students.
Pre-rationalised NCERT: “Liberalisation, Privatisation, Globalisation (LPG) and Industrial Development in India … The new Industrial Policy was announced in 1991. The major objectives of this policy were to build on the gains already made, correct the distortions or weaknesses that have crept in, maintain a sustained growth in productivity and gainful employment and attain international competitiveness.” |