Question

it is said that, new economic policy is liberal. do you agree? give agreement in support of your answer.

Answer 1

I agree with the above statement. New Economic Policy(NEP) that was initiated in 1991 was liberal in the sense that ​prior to the NEP, 1991 a host of controlling systems such as licensing system, foreign exchange control, control on expansion, etc. was imposed on the private sector. However, owing to this, inefficiencies crept into the system and economic growth was badly hampered. GDP growth rate hit an all time low. With the aim of reviving the economy, New Economic Policy was introduced in the year 1991. Liberalisation forms the foremost element of this policy.