While pursuing the policy of encouraging investment in the private sector, the Government has simultaneously taken a number of steps to rehabilitate the public sector industries. The improvement trend in the performance of public sector industries was maintained in 1990-91. The Government policy is now aimed at encouraging private sector investment and restricting investment in the public sector to the completion of on-going projects.
On the other hand Government is carrying out the programme of denationalization of many public sector industries. To facilitate timely availability of essential goods at reasonable prices and to minimize the control of Government on imports.
In order to achieve these objectives import of raw material and capital goods, as well as essential consumer goods were allowed liberally.