Question

explain any 3 reasons for introducing new economic policy in 1991?

Answer 1

Starting around 1991, some far- reaching changes in policy were made in India called as new economic policies:

• The government decided that the time had come for Indian producers to compete with producers around the globe.
• It felt that competition would improve the performance of producers within the country since they would have to improve their quality.
• This decision was supported by powerful international organisations.