Indian Economy

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The New Economic Policy 1991

Introduction

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 periods. The new economic policy (NEP) adopted at the flag end of the last century—with its constituents of liberalization, privatization and globalization—brought about momentous changes not only in the Indian industries but also in the mindset of the people who began to relish their newly found freedom from licensing, controls, inspection raj, import substitution and the insulated economy syndrome.

Genesis

Soon after taking over as the Prime Minister of India in 1985, the youthful and charismatic Rajiv  Gandhi outlined ...