Industrial licensing abolished except for a few industries
Private sector role expanded
Trade made free with a very small negative list of exports and imports
Peak tariffs brought down from 300 per cent to 50 per cent and import duty on capital goods reduced from 85 per cent to 25 per cent
Rupee made fully convertible on current account
Automatic approval granted for foreign equity participation up to 51 per cent in 36 specified high priority industry groups and 100 per cent equity permitted in core sectors like power
Restrictions on expansion of large industrial houses removed
FERA'S restrictions significantly relaxed
The Capital Issues Control Act, 1947, revoked
Indian companies permitted to access international capital markets through Euro-issues
Foreign Institutional Investors allowed to invest in Indian capital market
National Stock Exchange set up to introduce transparency through screen based trading as also to create secondary market for debt instruments
THE UNFINISHED AGENDA
Runaway fiscal deficit not contained
High interest rates continue
Consumer Price Index rise not controlled
Full convertibility of the rupee still a pipe dream
No transparent policy on transnational corporations
Depositories still not set up
New financial instruments like derivatives and options not available to investors
Absence of a vibrant debt market
Insurance sector still closed to the private sector
Infrastructure bottlenecks continue. In the absence of appropriate regulatory framework and transparent clear-cut policies, investment in infrastructure sector remain an unattractive proposition
Labour laws not suitably amended to permit closure of unviable sick units
Judicial framework, institutional and administrative structure not in tune with the reforms regime
Stranglehold of bureaucracy on commerce and industry still a problem
Plethora of permissions required to start an industry still prevalent, in spite of delicensing
PSU privatisation and disinvestment as well as opening up of oil sector incomplete
Discrimination against domestic companies by charging them higher tax rates on capital gains than the rates charged to FIIs continues
Value-added tax not introduced
Restrictions on international trade in agricultural goods continue
Agriculture not given the status of industry. Agriculture sector reforms lagging behind the overall liberalisation process adopted by the Government
