From the above, identify the major components of New Economic Policy of 1991.

Question

Study the following case/situation and express your opinion:

Zero Defect Zero Effect(ZED) is a slogan coined by the PM of India, with reference to the Make in India initiative launched by the government. The Zed model aims to make India the manufacturer of the world and present the products in the global market. 

Before the. initiative was launched, the limits of Foreign Direct Investment(FDI) in various sector had been released. The application for licenses was made available Online and various other norms and production were also considered by the government.

1. From the above, identify the major components of New Economic Policy of 1991.

2.  In the light of the above discussion explain the component of NEP 1991.

Answer 1

1. Liberalization and Globalization.

2. 1. Liberalization : It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business. 

2. Privatization : It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities. 

3. Globalization : It refers to integration of national economy and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people.