The New Economic Policy

The New Economic Policy (NEP), introduced in India in 1991, was a set of economic reforms aimed at liberalizing the economy. It shifted away from strict government control toward a more market-driven approach, encouraging private enterprise, foreign investment, and competition. The policy reduced trade barriers, deregulated industries, and privatized some state-run companies, ultimately promoting economic growth, efficiency, and globalization. NEP marked a significant move towards integrating India into the global economy, fostering a more dynamic and diverse economic environment while maintaining some government oversight to ensure social and economic stability.