Industry Policy Statement 1973
In the Industry Policy Statement 1973, the term “Core Industries” was included. It referred to the 6 Core Industries:
- Iron and Steel Industry
- Crude Oil
- Oil Refining
They were called the basic industries or infrastructure industries. The private players were allowed to apply for licensing in these industries and for that they required Rs. 20 Crore assets or more. In this policy some industries were reserved for small and medium players. The Public Private Partnership (PPP) also was emphasized as a prototype and it was called “Joint Sector” in which a partnership between state, centre and private sector was allowed. In the same year, Government had also enacted the Foreign Exchange Regulation Act 1973 (FERA) due to severe crunch of Foreign Exchange. India also allowed limited investment by MNCs in the country.