Explanation:

The main objectives behind the launching of the New Economic policy (NEP) in 1991 by the union Finance Minister Dr. Manmohan Singh are stated as follows: 1. The main objective was to plunge Indian Economy in to the arena of ‘Globalization and to give it a new thrust on market orientation. 2. The NEP intended to bring down the rate of inflation 3. It intended to move towards higher economic growth rate and to build sufficient foreign exchange reserves. 4. It wanted to achieve economic stabilization and to convert the economy into a market economy by removing all kinds of un-necessary restrictions. 5. It wanted to permit the international flow of goods, services, capital, human resources and technology, without many restrictions. 6. It wanted to increase the participation of private players in the all sectors of the economy. That is why the reserved numbers of sectors for government were reduced. As of now this number is just 2.