- The New Industrial Policy brought radical changes.
- It abolished the system of pervasive industrial licensing (License Raj).
- It eliminated controls over investment and expansion by large industrial houses (MRTP Act).
- It drastically pruned the list of industries exclusively reserved for the public sector.
- Many critical areas like power, air transport, telecom were opened for private sector.
- This promoted competition and reduced government intervention.
- It aimed to create an environment comparable to other developing countries.