The major impact of liberalization and
globalization of economy, which started in India
in July, 1991, was to do away with the Compulsory
Licensing. As of now only FOUR industries are
reserved for the Public Sector and only SIX
industries fall under the compulsory licensing, as
LIST OF INDUSTRIES RESERVED FOR THE PUBLIC
1. Arms and ammunition and allied items of defence
equipment, Defence aircraft and warships.
2. Atomic energy.
3. The substances specified in the scheduled to
the notification of the Government of India in the
Department of Atomic Energy number S.O.212(E),
dated the 15th March, 1995.
4. Railway transport.
LIST OF INDUSTRIES FOR WHICH INDUSTRIAL
LICENSING IS COMPULSORY
1. Distillation and brewing of alcoholic drinks.
2. Cigars and Cigarettes of tobacco and
manufactured tobacco substitutes.
3. Electronic Aerospace and Defence equipment: all
4. Industrial explosives including detonating
fuses, safely fuses, gun powder, nitrocellulose
5. Hazardous chemicals.
6. Drugs and Pharmaceuticals (according to
modified Drug Policy issued in September, 1994).
In case of the small units which employ less than
50 workers with power or less than 100 workers
without power are not required to obtain any
license under Compulsory Licensing Provisions.
For further details visit website http://indmin.nic.in