SSC MTS EXAM

Detailed explanation-1: -The New Economic Policy (NEP) of India was launched in the year 1991 under the leadership of P. V. Narasimha Rao. The New Economic Policy was undertaken by Finance Minister Manmohan Singh as an answer to the economy the nation was facing in the 1990s.

Detailed explanation-2: -The five main reasons for adopting the New Economic Policy of 1991 in India are Debt Trap, Minimum Foreign Exchange Reserves, High Fiscal Deficit, Rise in Inflation Rate and shrinking of International Trade.

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.