Q. Which of the following is/are the initiatives of Industrial policy resolution 1980?
1. Liberal attitude followed towards the expansion of private industries.
2. The ‘MRTP Limit’ was revised upward to Rs. 50 crore to promote setting of bigger companies
Select the correct answer using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

The year 1980 saw the return of the same political party at the Centre. The new government revised the Industrial Policy of 1977 with few exceptions in the Industrial Policy Resolution, 1980. The major initiatives of the policy were as given below: 

  • Foreign investment via the technology transfer route was allowed again (similar to the provisions of the IPS, 1973). 
  • The ‘MRTP Limit’ was revised upward to Rs. 50 crores to promote setting of bigger companies. 
  • The DICs were continued with. 
  • Industrial licensing was simplified. 
  • Overall liberal attitude followed towards the expansion of private industries. 

Source: TMH Ramesh Singh