Industrial Policy Evolution — Policy Reforms

Entry	Year	Description	Impact
Replacement of FERA with FEMA	1999	The Foreign Exchange Regulation Act (FERA) of 1973, a highly restrictive law, was replaced by the Foreign Exchange Management Act (FEMA) in 1999. This legislative change was a direct consequence of the 1991 economic reforms.	Shifted the focus from 'regulation' to 'management' of foreign exchange, significantly easing controls on foreign investment, trade, and payments. It facilitated greater integration of the Indian economy with global markets and made India a more attractive destination for FDI, aligning with the liberalized industrial policy.
Replacement of MRTP Act with Competition Act	2002	The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, which aimed to curb monopolies and concentration of economic power, was repealed and replaced by the Competition Act, 2002.	Marked a fundamental shift in regulatory philosophy from controlling monopolies to promoting competition. The Competition Act focuses on preventing anti-competitive agreements, abuse of dominant position, and regulating combinations (mergers and acquisitions) that could adversely affect competition, thereby fostering a more dynamic and fair industrial environment.
Companies Act, 1956 replaced by Companies Act, 2013	2013	The Companies Act, 1956, which governed corporate affairs, was replaced by a more modern and comprehensive Companies Act, 2013.	Introduced significant reforms in corporate governance, corporate social responsibility (CSR), investor protection, and ease of doing business. It streamlined regulations, enhanced transparency, and provided a more robust legal framework for companies operating in India, directly impacting the industrial and business environment.
Amendments to Industries (Development and Regulation) Act, 1951	Various, notably post-1991	While the IDRA, 1951, was not repealed, its core provisions related to industrial licensing were significantly amended and diluted following the New Industrial Policy of 1991.	The requirement for industrial licensing was abolished for most industries, effectively dismantling the 'License Raj'. The Act's role shifted from a tool for pervasive control to a more limited regulatory framework for a few strategic or environmentally sensitive industries, reflecting the move towards deregulation and liberalization.