- Industrial Policy:
- Abolished pervasive industrial licensing (License Raj).
- Eliminated controls over investment and expansion by large industrial houses (MRTP Act).
- Drastically pruned industries reserved for public sector.
- Opened critical areas (power, hydrocarbon, air transport, telecom) to private sector.
- De-licensed items reserved for MSME sector.
- Trade and Exchange Rate Policy:
- Dismantled complex import control regime for raw materials, inputs, capital goods.
- Allowed free import of most goods (except negative list).
- Gradual lowering of customs duties.
- Rupee devalued by 24% in July 1991.
- Moved to market-based exchange rate system (managed float) in March 1993.
- Rupee made fully convertible at current account.
- Financial Sector Reforms:
- Banking sector opened to private competition (new private banks).
- SEBI established as independent statutory authority for capital markets.
- Capital market opened for portfolio investments.
- Indian companies allowed to access international capital markets (GDRs).
- Abolished government control over capital issues and pricing (repealed Capital Issues Control Act).