Q. With reference to the Industrial Policy Resolution of 1980, consider the following statements:
1.It re-allowed foreign investment through technology transfer, continuing the liberal approach seen in the 1973 policy.
2.It abolished the MRTP limit to encourage the unrestricted expansion of large industrial houses.
3.The policy continued the establishment of District Industries Centres (DICs) and simplified industrial licensing procedures.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Explanation:

  • The 1980 policy re-allowed foreign investment via technology transfer, restoring the approach followed in the 1973 policy.
  • The MRTP limit was not abolished; it was revised upward to ₹50 crore, not removed entirely.
  • The DICs (District Industries Centres) continued, and industrial licensing was simplified, indicating a more liberal approach towards private sector growth.

Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh

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