What was the primary impact of India's 1991 New Industrial Policy on industries reserved for the public sector?

The 1991 New Industrial Policy in India marked a significant shift towards economic liberalization, privatization, and globalization. A core component of this policy was to reduce the dominance of the public sector and encourage private sector participation.

• Option a is incorrect. The policy aimed to decrease, not increase, the number of industries reserved for the public sector.
• Option b is incorrect. The policy moved away from making all industries exclusively public-sector owned; instead, it opened up many sectors to private investment.
• Option d is incorrect. The policy actively encouraged private investment across various sectors, including manufacturing.

The correct change introduced by the 1991 New Industrial Policy regarding industries reserved for the public sector was to significantly reduce their number, thereby opening up more sectors for private investment and competition. Initially, 17 industries were reserved for the public sector, which was reduced to 8, and later to just 3 (railways, atomic energy, and certain defense-related items).

The final answer is $\text{c}$