Assignment for Ms3-Economic and Social Environment
Question 1: Briefly review the New Economic Policy of 1991. Highlight the landmark developments undertaken in the field of Public Sector Policy.
Answer 1:
New Economic Policy of 1991:
Introduction:
The New Economic Policy (NEP) consisted of wide ranging economic reforms. The thrust of the policies was towards creating a more competitive environment in the economy and removing the barriers to entry and growth of firms. This set of policies can broadly be classified into two groups: the stabilization measures and the structural reform measures. Stabilization measures are short term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. In simple words, this means that there was a need to maintain sufficient foreign exchange reserves and keep the rising prices under control. On the other hand, structural reform policies are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness by removing the rigidities in various segments of the Indian economy.
Impact of New Economic Policy:
The NEP was announced in year 1991. In this policy liberalization, privatization and globalization were mainly emphasized. The first two are policy strategies and the last one is the outcome of these strategies. The main emphasis under these three aspects were; i) replacing controlled economy by liberal one i.e. reducing controls and promoting liberalization, ii) encouraging private sector, iii) promoting foreign direct investment, iv) introducing improved technology, v) encouraging modernization of agriculture, vi) introducing extensive changes in trade policy, monetary policy and fiscal policy, vii) keeping fiscal deficit under control. All these measures are called New Economic Policy.
The economic reforms introduced in India since 1991 has already created mixed reaction. R. Nagraj, has conclude that these economic reforms have only
Answer 1:
New Economic Policy of 1991:
Introduction:
The New Economic Policy (NEP) consisted of wide ranging economic reforms. The thrust of the policies was towards creating a more competitive environment in the economy and removing the barriers to entry and growth of firms. This set of policies can broadly be classified into two groups: the stabilization measures and the structural reform measures. Stabilization measures are short term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. In simple words, this means that there was a need to maintain sufficient foreign exchange reserves and keep the rising prices under control. On the other hand, structural reform policies are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness by removing the rigidities in various segments of the Indian economy.
Impact of New Economic Policy:
The NEP was announced in year 1991. In this policy liberalization, privatization and globalization were mainly emphasized. The first two are policy strategies and the last one is the outcome of these strategies. The main emphasis under these three aspects were; i) replacing controlled economy by liberal one i.e. reducing controls and promoting liberalization, ii) encouraging private sector, iii) promoting foreign direct investment, iv) introducing improved technology, v) encouraging modernization of agriculture, vi) introducing extensive changes in trade policy, monetary policy and fiscal policy, vii) keeping fiscal deficit under control. All these measures are called New Economic Policy.
The economic reforms introduced in India since 1991 has already created mixed reaction. R. Nagraj, has conclude that these economic reforms have only