Explain the nature and scope of new economic policy of india
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1. Liberalisation
The fundamental feature of the new economic policy is that it provides freedom to the entrepreneurs to establish any industry/trade/ business venture.
The entrepreneurs are not required to get prior approval for any new venture. What they need is that they have to fulfill certain conditions to get into a line of one's choice.
2. Extension of privatization
Another feature of the new economic policy is the extension in the scope of privatization. Now, the majority of economic activities will be conducted by the private sector. In the wave of privatization, out of 17 industries reserved for public sector, 11 industries have been given to the private sector.
Moreover, Govt has also privatized the ownership of some public sector undertakings by the sale of capital of some selected enterprises to the private sector.
3. Globalisation of economy
The new economic policy has made the economy outwardly oriented. Now, its activities are to be governed both by domestic market as also the world market.
It means unification of the domestic economy with the world, economy. In fact, this has become possible by various policy initiatives taken by the Govt.
4. Market friendly state
The role of the state is one that is confined to selected non-market areas and is largely to ensure a smooth functioning of the market economy.
As compared to past, the ownership of some selected enterprises has been transferred to private sector. Its activities as owner of resources have been confined to two types of activities.
5. Modernization
New economic Policy accorded high priority to modern techniques. It aims at to augment the growth rate of sunrise industries. In order to import technical dynamics to Indian industry, the Govt, decided to clear all foreign collaborations.
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The fundamental feature of the new economic policy is that it provides freedom to the entrepreneurs to establish any industry/trade/ business venture.
The entrepreneurs are not required to get prior approval for any new venture. What they need is that they have to fulfill certain conditions to get into a line of one's choice.
2. Extension of privatization
Another feature of the new economic policy is the extension in the scope of privatization. Now, the majority of economic activities will be conducted by the private sector. In the wave of privatization, out of 17 industries reserved for public sector, 11 industries have been given to the private sector.
Moreover, Govt has also privatized the ownership of some public sector undertakings by the sale of capital of some selected enterprises to the private sector.
3. Globalisation of economy
The new economic policy has made the economy outwardly oriented. Now, its activities are to be governed both by domestic market as also the world market.
It means unification of the domestic economy with the world, economy. In fact, this has become possible by various policy initiatives taken by the Govt.
4. Market friendly state
The role of the state is one that is confined to selected non-market areas and is largely to ensure a smooth functioning of the market economy.
As compared to past, the ownership of some selected enterprises has been transferred to private sector. Its activities as owner of resources have been confined to two types of activities.
5. Modernization
New economic Policy accorded high priority to modern techniques. It aims at to augment the growth rate of sunrise industries. In order to import technical dynamics to Indian industry, the Govt, decided to clear all foreign collaborations.
Hope u like the ans.. Plse Mark me as brainlist
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