The broad features of this policy were:
(i) Government reduced the number of industries under compulsory licensing to six.
(ii) Many industries, which were reserved for the public sector under the earlier policy, were dereserved.
(iii) Disinvestment was carried out in case of many public sector industrial enterprises.
(iv) The share of foreign equity participation was increased as policy towards foreign capital was liberalised.
(v) Foreign Investment Promotion Board was set up to promote and channelise foreign investment in India.