Hayat Ashraf

The New Economic Policy (NEP) implemented in India since the early 1990s has had a profound impact on the country's economy. Here are some key impacts of the NEP: 1. Economic Growth: One of the significant impacts of the NEP has been the acceleration of economic growth in India. The policy shift towards liberalization, privatization, and globalization opened up the economy, attracted foreign investment, and stimulated domestic entrepreneurship. As a result, India witnessed a higher GDP growth rate, averaging around 6-8% per year in the post-reform period. 2. Foreign Direct Investment (FDI): The NEP facilitated an increase in foreign direct investment in India. With the relaxation of investment regulations and the opening up of various sectors to foreign participation, India became an attractive destination for global investors. FDI inflows increased significantly, bringing in technology, capital, and expertise, and contributing to economic development. 3. Industrial and Sectoral Gr...