Delicensing and Deregulation — Prelims Strategy

Prelims Strategy

For Prelims, focus on factual accuracy and conceptual clarity regarding delicensing and deregulation. Vyyuha's strategy emphasizes a multi-pronged approach:

1
Definitions and Distinctions: — Clearly understand the difference between delicensing (removal of industrial licenses) and deregulation (broader reduction of government controls). Expect questions that test this nuance directly or indirectly.
2
Key Milestones and Dates: — Remember the year 1991 as the watershed moment for the New Economic Policy. Be aware of the Industries (Development and Regulation) Act, 1951, and its role pre- and post-1991. Know about FEMA replacing FERA and the Competition Act replacing MRTP Act.
3
Constitutional Articles: — Memorize Article 19(1)(g) and Article 301, understanding their relevance to freedom of trade and business. Questions might link policy changes to constitutional provisions.
4
Sectors Under Compulsory Licensing: — Know the current list of industries that still require compulsory licensing (alcoholic drinks, tobacco, defense equipment, industrial explosives, hazardous chemicals). This is a frequent factual trap.
5
Impact and Outcomes: — Focus on the broad positive impacts like increased competition, FDI, growth, and technological upgradation. Also, be aware of the shift in the government's role from controller to regulator.
6
Regulatory Bodies: — Identify the key independent regulatory bodies established post-liberalization (TRAI, SEBI, IRDAI, CCI) and their respective sectors. Questions often test their functions.
7
Examples: — Associate specific sectors (e.g., telecommunications, aviation, banking) with their deregulation stories. Understand which sectors were successful and why.
8
Vyyuha Exam Radar: — Pay attention to the shift from basic definitional questions to those requiring a deeper understanding of impacts, challenges, and the evolving regulatory landscape. Practice MCQs that involve multiple statements requiring analytical judgment.