Economy, asked by ratneshpandey30, 1 year ago

explain the features of new economic policy 1991

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Answered by mananchelani7012

The new economic policy has made provision for liberalizing the economy against unnecessary controls and regulations. Here the liberalisation simply indicates liberating the trade and industry from unwanted restrictions. In order to liberalise the economy and to bring transparency in the policy, the New Industrial Policy, 1991 has abolished the system of industrial licensing for all industrial undertaking, irrespective of the level of investment, except for a short list of 18 industries related to security and strategic concern, social reasons, hazardous chemicals and overriding environmental concerns and items of elitist consumption.

Answered by alishasajeesh

seven important features of new economic policies under economic reforms, i.e., (1) Liberalisation, (2) Privatisation, (3) Globalisation of the Economy, (4) New Public Sector Policy, (5) Modernisation, (6) Financial Reforms, and (7) Fiscal Reforms.

ratneshpandey30: all 7

mananchelani7012: you can search this on google it will explain u all 7

mananchelani7012: please brainlist me

alishasajeesh: liberisation:The new economic policy has made provision for liberalizing the economy against unnecessary controls and regulations. Here the liberalisation simply indicates liberating the trade and industry from unwanted restrictions. In order to liberalise the economy and to bring transparency in the policy, the New Industrial Policy, 1991 has abolished the system of industrial licensing for all industrial undertaking, irrespective of the level of investment, except for a short list of 18country

alishasajeesh: privatisation:Another important feature of New Economic Policy is the promotion of the policy of privatisation. Here the word privatisation means introduction of private ownership in publicly owned and managed enterprises and also signifies introduction of private control and management in public sector enterprises. Under the policy of economic reforms private sector has been allowed to play a major role in respect of economic activities.

alishasajeesh: 3)By the term globalisation we mean opening up of the economy for world market by attaining international competitiveness. Thus the globalisation of the economy simply indicates interaction of the country relating to production, trading and financial transactions with the developed industrialised countries of the world.

Globalisation of the economy offers both challenges and opportunities to the developing countries.

alishasajeesh: 4)Another important feature of new economic policy is its change in public sector policy. The new policy has shifted its emphasis from public to private sector.

The Industrial Policy has undertaken the following four major policy decisions in respect of public sector:

(i) Reduction in the list of industries reserved for the public sector from 17 to 8 and introducing selective competition in the reserved areas.

alishasajeesh: 5)The New Economic Policy has been providing high priority to the introduction of modern techniques in production system. The policy facilitates the growth of sunrise industries, i.e. electronics and computers. In order to introduce better and improved technology, the government is permitting all foreign collaboration proposals related to the import of high technology.

alishasajeesh: 6)As per the recommendations of the Narasimham Committee the Government has undertaken various measures for the reform of the financial sector.

These include:

(i) Reduction in liquidity ratio,

(ii) Abolition of direct credit programmes,

(iii) Free determination of interest rates

alishasajeesh: 7)Another important feature of New Economic Policy is to introduce fiscal policy reforms. The Government initiated various fiscal measures in order to reduce the fiscal deficit from 8.4 per cent of GDP in 1990-91 to 5.0 per cent in 1996-97 and then to 4.4 per cent in 1999- 2000.

In order to achieve the target the Government has introduced various controls over public expenditure and took initiative to raise its both tax and non-tax revenue.

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explain the features of new economic policy 1991