ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -India introduced a new economic policy in 1992.

Detailed explanation-2: -The new economic policy was introduced under the leadership of Narasimha Rao in 1991. Finance minister Shri Manmohan Singh undertook it as the answer to the economy in the crisis the nation was facing in 1990. The involvement of private companies made the public sector more disciplined and efficient.

Detailed explanation-3: -Objectives of New Economic Policy 1991. Enter into the field of ‘globalisation’ and make the economy more market-oriented. Reduce the inflation rate and rectify imbalances in payment. Increase the growth rate of the economy and create enough foreign exchange reserves.

Detailed explanation-4: -New economic policy was undertaken in view of the 1991 financial crisis that arose due to reasons like the gulf war that pushed up oil prices and lower remittances from the gulf, foreign reserves at an all-time low, hyperinflation occurring at the same time.

Detailed explanation-5: -P V Narasimha Rao was the Prime Minister of India when the New Economic Policy of 1991 was introduced. Dr. Manmohan Singh was the Finance Minister.