Question

Why Is NEP Called the Policy of Economic Reforms?

Answer 1

NEP or New Economic Policy is called the policy of economic reforms as under this policy India became a growing nation by reducing the balance of payment deficit. It led to liberalization of the economy along with the relaxation of trade and business rules and restrictions that also made it possible to earn foreign currency in the form of foreign direct investment.

Also read:

• Economic Reforms
• MCQs on Liberalisation
• MCQs on Globalisation