What Is The New Economic Policy 1991
The most significant aspect of this policy is the global exposure of India to the outer world, which was the most unique and effective step taken. New Economic Policy 1991 India brought economic liberalization to the country by opening the markets for private and foreign investors, encouraging imports, and reducing taxes to boost commercial activities with profitability. The new economic policy focused on removing obstacles in the path of economic growth and creating a more competitive environment with exposure to the global market. New Economic Policy 1991 India introduced changes related to foreign trade and investments, privatization in industry, and fiscal discipline. The various reforms constitute an economic policy in India that was a major departure from previous measures taken by the government.
The Main Features of New Economic Policy
Before 1991, India observed limited economic growth due to various controls and restrictions on new ventures and the inflow of foreign goods and services. So an economic policy in India was necessary to bring major reforms that would remove the barriers to growth and boost the economy. The key features of the New Economic Policy 1991 India are mentioned as follows:
- The policy emphasized liberalization and privatization, allowing global exposure.
- The new economic policy recommended structural reforms and measures to control inflation.
- The policy focused on increasing international market competitiveness by allowing the entry of foreign companies.
- The policy reduced control and reservation by the government in different sectors and allowed more participation of private companies to help in growth and profitability.