Indian & World Geography·Policy Changes
Delicensing and Deregulation — Policy Changes
Constitution VerifiedUPSC Verified
Version 1Updated 6 Mar 2026
| Entry | Year | Description | Impact |
|---|---|---|---|
| Industrial Policy, 1991 | 1991 | This landmark policy statement drastically reduced the number of industries requiring compulsory industrial licensing from almost all to just 18. It also opened up many sectors previously reserved for the public sector to private investment. | Dismantled the core of the 'License Raj', stimulated private sector growth, increased competition, and attracted foreign investment, fundamentally altering India's industrial landscape. |
| FEMA (Foreign Exchange Management Act) | 1999 | Replaced the Foreign Exchange Regulation Act (FERA), 1973. FEMA aimed to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India. | Significantly liberalized foreign exchange transactions, making it easier for foreign companies to invest in India and for Indian companies to operate globally, a key component of FDI policy liberalization [VY:ECO-02-05-02]. |
| Competition Act | 2002 | Replaced the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. The Competition Act shifted focus from curbing monopolies to promoting and sustaining competition in markets, protecting consumer interests, and ensuring freedom of trade. | Established a modern competition policy framework [VY:ECO-02-07-03], ensuring that the benefits of delicensing and deregulation were not undermined by anti-competitive practices, thus fostering a level playing field. |
| Drone Rules | 2021 | Significantly liberalized the regulatory regime for drones in India. It reduced the number of forms, fees, and permissions required, making it easier to operate and manufacture drones. | Aimed at making India a global drone hub by fostering innovation, investment, and job creation in the emerging drone sector, demonstrating ongoing sectoral deregulation. |