Question

Write a short note on New Economic Policy.

Answer 1

• India agreed on the conditions of IBRD [World bank] and IMF and announced New Economic Policy [NEP] Which consists of a wide range of economic reforms.
• This new set of economic reforms is commonly known as LPG.
• Liberalization – Relaxation of laws and rules by the Government
• Privatization – PSUs sold to the private sector.
• Globalization – Integration of domestic economy with the world economy.