Question

Out of stabilisation measures and structural measures under NEP, can you choose one of them? If not why? Explain.

Answer 1

We need both stabilisation measures as well as structural measure under NEP. Stabilisation measures are short-term measures required to control fiscal deficit, correct the balance of payments deficit and contain inflation. On the other hand, structural measures are long-term measures aimed at improving the efficiency, productivity and competitiveness in the Indian economy.