Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsEconomic Reforms2 Marks
Question
Which changes are made by Indian legislative body for liberalization in regulation (laws)?
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Answer
$MRTP$ Act was replaced by Competition Act.
This Act preventing enterprises from growing very big and establishing monopolies.
Competition Act, $2002$: This Act replaced $MRTP$ and was aimed at reducing unhealthy competition among the enterprises.
$FERA$ was replaced by $FEMA.$ The word regulatory was removed from $FERA$ and replaced by the word management.
This Act regulating foreign exchange earnings and transactions of enterprises.
$FEMA$ Act managing foreign exchange earnings and transactions of enterprises instead of regulating those.
Major changes were made in the industrial policy.
Some sectors are opening up for private sector which reserved for investment only by the public sector.
Now only three sectors are reserved for the public sector namely.
Atomic energy, some minerals related to atomic energy and railways. Another noteworthy change was raising the investment limit in the definition of small scale units so that with higher investment a small scale unit can adopt modernization.
The procedure for foreign investment became more investor friendly and in many sectors automatic licensing path was introduced for investment by foreign companies in India.
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