In the initial years, approach of firms, capacity expansion, choice of products including capacity mix and technology, all precise areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the scheme had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and constrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism all over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. scholarship of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New stinting Policy (NEP) in 1985. However,... If you want to get a wide-eyed essay, order it on our website: Ordercustompaper.com
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