Question

Explain the following the economic policies

1. Agricultural Policy
2. Industrial policy
3. New ecnomic policy

Answer 1

1. Agricultural Policy: It means a set of decisions and actions taken by the government relating to domestic agriculture and imports of agricultural products.

The policy mainly focus on the following areas:

1. Risk Management and Adjustment
2. Economic Stability
3. Natural Resources
4. Environmental Sustainability
5. Research and Development
6. Market for domestic agricultural commodities

In general, the agricultural policy includes Price policy, Land Reform policy, Green Revolution, Irrigation policy, Food policy, Labour policy, and cooperative policy.

2. Industrial policy: It means a set of decisions taken by the government relating to industrial sector, domestic production, trade, self-sufficiency and modernisation.

The policy mainly focus on the following areas:

1. Employment generation
2. Utilisation of Natural resources
3. Boosting the other sector development
4. Research and Development
5. Modernization
6. Environmental protection
7. Trade
8. Development of small-scale industries.

In general, the Industrial policy includes the Textile Industry policy, Sugar industry policy, Price policy, Small scale industries policy, Industrial Labour policy.

3. New Economic Policy: The New Economic Policy was introduced in 1991 which includes LPG. LPG refers to Liberalisation, Privatisation, and Globalisation. Therefore the policy is called the LPG model.

The main objective of this model was to make the economy of India, the fastest developing economy in the world to become equal to the biggest economies of the world. Definitely, this model had influenced India’s Economic growth and development.