➢ With the fall of Janata Government and return of Congress to power, a new Industrial Policy was issued on July 23, 1980.This policy maintained the basic objectives of the Industrial Policy 1956 again as the framework of industrial development.

➢ IPR, 1977 caused undue emphasis on small scale sector and virtually neglected the growth of large scale Industries. Thus, this policy sought to check the decline in the industrial growth rate. This Policy Statement was only a further elucidation of the 1956 Industrial Policy.

➢ Industrial Delicensing

The removal of licensing requirements for industries, domestic as well as foreign, commonly known as “de-licensing of industries” is another important feature of NIP. Till the 1990s, licensing was compulsory for almost every industry.

The Industrial Policy Statement, 1980 laid down the following objectives-

• Optimum utilization of installed capacity.
• Maximizing production and productivity
• Employment generation
• Correcting regional imbalances
• Emphasis on cottage and small-scale industries.
• Promotion of export oriented industries.
• This policy gave preferential treatment to the development of agro based industries.