What was New Economic Policy?

New Economic Policy means wide range of reforms introduced by the government in July 1991

Dr. Manmohan Singh was the Finance Minister at that time.

Main Objective:

1. Creating More Competitive Environment in Economy

2. Removing Barriers to Entry and Growth of Firms

Different Measures taken

Stabilization Measures

These were short term measures taken, whose objective was to:

Correct weakness in balance of payments

Reduce Inflation

Structural Reform Measures

They were long term measures, whose main objective was to:

Improve Efficiency of Economy

Increase International Competiveness

Different Policy Followed

They can be categorized into:

1. Liberalization
2. Privatization
3. Globalization

Lets learn about them one by one

NCERT Questions

Question 3

What do you understand by devaluation of rupee?

MCQ Other Books

Question 1

In the following questions, select the correct answers:

Which of the following is a policy initiated under New Economic Policy?

1. Liberalization
2. Privatization
3. Globalization
4. Disinvestment

Question 2

When was the New Economic Policy announced?

1. June, 1991
2. July, 1991
3. August, 1991
4. January, 1991

Question 3

____ was the Indian Finance Minister in 1991, acknowledged for his capabilities to steer away the economic crisis

looming large on the erstwhile Indian economy.

1. Dr. Subramanian Swamy
2. Dr. Manmohan Singh
3. Pranab Mukherjee
4. Dr. Urjit Patel

Question 4

Liberalized Industrial Policy was announced on:

1. April 1, 1991
2. May 1, 1991
3. June 24, 1991
4. July 24, 1991