Question

why did the Government of India decide to implement new industrial policy in 1991 ?​

Answer 1

The main objectives to launch new economic policy (NEP) in 1991 are as follows: The main objective was to plunge Indian economy in to the field of 'Globalization and to give it a new drive on market orientation. ... It intended to move towards higher economic growth rate and to build sufficient foreign exchange reserves.

Answer 2

$\huge{Answer}$

The Government of India decided to implement the (New) Industrial Policy in 1991 due to the following reasons :-

⤗The Government had adopted the path of planning in 1952 to accelerate India's economic development. A number of Five-year plans were implemented. In spite of their limited success, the Plans could not achieve substantial economic development.

⤗The Government reviewed the past policies and decided to rectify the past mistakes.

⤗To give directions to the future economic development, it decided to implement liberalization, privatization and globalization

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