Which of the following were the major objectives of the New Economic Policy NEP implemented after 19...........

Economic Affairs Planning in India

Which of the following were the major objectives of the New Economic Policy (NEP) implemented after 1991 economic crisis?

1. Increasing foreign exchange reserves

2. Bringing inflation under control

3. Increasing the international competitiveness of the Indian economy

Select the correct answer using the code given below.

1 and 2 only

1 and 3 only

2 only

1, 2 and 3

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Explanation:

After the economic crisis of 1991, India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms like deregulation of industrial sector, financial sector reforms, tax reforms and foreign exchange reforms. The major objectives of the NEP are as follows -:

Reforming and correct the weaknesses that had developed in the balance of payments. Thus, there was a need to maintain sufficient foreign exchange reserves to prevent another balance of payments crisis.
Bringing inflation under control.
Improving the efficiency of the economy
Increasing its international competitiveness by removing the rigidities in various segments of the Indian economy.
Hence, all the statements are correct.