Question

How did the New Economic Policy prove beneficial to India?

• A. The domestic producer could produce more using advanced technologies.
• B. Setting up new businesses became comparatively easy for domestic producers.
• C. It helped increase the national income.
• D. It helped in equal distribution of income.

Answer 1

Answer: (A), (B), (C)

It helped increase the national income.

Due to the exchange of technology, domestic producers could produce more and export the surplus. As it was quicker and simpler to set up a new business in the country, the need for employees increased. This increased employment opportunities. All this led to an increase in national income.