New Economic Policy (NEP)

The New Economic Policy (NEP) was introduced by India in 1991 to revamp the country's economy. It aimed to promote growth, reduce inflation, and improve international competitiveness by liberalizing markets, encouraging foreign investments, and decentralizing decision-making. The policy shifted away from heavy government control, allowing private businesses to operate more freely, and reformed sectors like industry, trade, and banking. Essentially, the NEP marked India's transition from a mostly planned economy to a more market-oriented one, fostering rapid economic development and integration with the global economy.