Exit Policy: Implications and Issues for Discussion

The country has recently liberalised the equity participation to 51% by foreign companies and even 100% by NRIs. In addition, the package contains many other measures to liberalise the investment climate. It is expected that more foreign investment will flow into the country and that there will be an allround spurt in the investment in the industrial development. The investors, however, went an option for speedily closing down the unit or restructuring it by retrenching surplus labour, if necessary, in case of failure. This paper is divided into four parts. Part I presents the magnitude of sickness, part II analysis with the policies to draft with industrial sickness, part III the new approach, and part IV the issues for discussion on exit policy.