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

New Economic Policy, 1991 - Teachoo.JPG

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

What are Stabilization and Structural Reform Measures - Teachoo.JPG

Stabilization Measures - Teachoo.JPG

 

Structural Reform Measures - Teachoo.JPG

Different Policy Followed

They can be categiorzed into:

1 Liberalization

2 Privatisation

3 Globalisation

 

Lets learn about them one by one

NCERT Questions

Q5

What do you understand by devaluation of rupee?

View Answer

 

MCQ Other Books

Q1

In the following questions, select the correct answers:

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

A Liberalisation

B Privatisation

C Globalisation

D Disinvestment

View Answer

 

Q2

When was the New Economic Policy announced?

A June, 1991

B July, 1991

C August, 1991

D January, 1991

View Answer

 

Q3

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

looming large on the erstwhile Indian economy.

A Dr. Subramanian Swamy

B Dr. Manmohan Singh

C Pranab Mukherjee

D Dr. Urjit Patel

View Answer

 

 

Q4

Liberalised Industrial Policy was announced on:

A April 1, 1991

B May 1, 1991

C June 24, 1991

D July 24, 1991

View Answer
  1. Class 12 NCERT
  2. Indian Economic Development

Transcript

New Economic Policy, 1991 Something new (Different from Earlier Policies Followed till 1990 ) Different Economic Reforms & Measures (Both short term & long term) Policy of LPG Liberalization Privatization Globalization Introduced in 1991 By Indian Govt (PV Narsimha Rao - PM Manmohan Singh - FM) What was New Economic Policy? New Economic Policy means wide range of reforms introduced by the government in July 1991 Main Objective: Creating More Competitive Environment in Economy Removing Barriers to Entry and Growth of Firm What are Stabilization and Structural Reform Measures? Issues In Indian Economy Short Term Issues Weak Balance of Payment High Inflation For this, New Economic policy had Short Term Measures called Stabilization Measures Long Term Issues Economy Not Efficient Economy Not Internationally Competitive For this, New Economic policy had Long Term Measures called Structural Reform Measures Stabilization Measures (Short term Measures in New Economic Policy) Short Term Issues Weak Balance of Payment (Money flowing into country much more than money flowing out of country) High Inflation (High price of Essential Goods) Stabilization Measures Correct Weakness in Balance of Payments (Invite More Foreign Investment into India, bring Foreign Investment) Reduce Prices (Make Price of Essential Goods affordable)

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.