The correct option is 1 and 3 only.
Explanation
The economic reforms initiated in 1991 aimed to restructure the Public Sector Undertakings (PSUs) to enhance efficiency, productivity, and competitiveness. These reforms focused on deregulation, reducing the scope of the public sector in non-strategic areas, and professionalizing management.
Statement 1 is Correct:
The New Industrial Policy of 1991 drastically reduced the number of industries reserved exclusively for the public sector. The number was initially reduced from 17 to 8, and subsequently to 3. Currently, only sectors such as atomic energy and railway operations remain reserved for the public sector.
Statement 2 is Incorrect:
Disinvestment involves the sale of government equity in PSUs to the private sector or the general public. The primary objective of disinvestment is to reduce the government's shareholding and fiscal burden, not to increase it. This process is intended to introduce market discipline and improve management efficiency.
Statement 3 is Correct:
To enable PSUs to compete globally and operate efficiently, the government granted significant managerial and financial autonomy to successful enterprises. Classifications such as Navratna, Miniratna, and later Maharatna were introduced. These statuses allow PSUs to make investment decisions, enter joint ventures, and manage human resources with reduced government interference.
Key Takeaway:
Public sector reforms post-1991 are characterized by the de-reservation of industries, the disinvestment of government equity to reduce state control, and the granting of operational autonomy to high-performing PSUs (Navratnas/Maharatnas).