Hayat Ashraf

The New Economic Policy in India refers to a series of economic reforms initiated in the early 1990s to liberalize and transform India's economy. These reforms, also known as the "Liberalization, Privatization, and Globalization" (LPG) policies, aimed to shift from a controlled and protected economy to a more market-oriented and globally integrated one. Here are key elements of the New Economic Policy: 1. Liberalization: The liberalization aspect of the policy aimed to dismantle the complex system of industrial licensing and permits, reduce the role of the state in economic activities, and promote competition. Industrial licensing was abolished for most industries, except for a few sensitive sectors. Restrictions on foreign investment were relaxed, and foreign direct investment (FDI) was encouraged in various sectors. 2. Privatization: The policy sought to privatize state-owned enterprises (SOEs) and reduce the government's role in business operations. The objective w...