Business Environment, 1st Edition by Pearson

The new economic policy (NEP) refers to a set of transformational

policy changes introduced by the Indian government in 1991 to

reverse the then existing economic policies to achieve the country’s

macroeconomic objectives. In this chapter, we shall study the genesis

of the new economic policy, its background and the early crisis man-

agement measures adopted by the government.

When economic historians set to write the chequered history of

Indian economic development, they are bound to bifurcate the

development process into the pre- and the post-liberalization peri-

ods. The new economic policy adopted at the fag end of the last

century—with ...