Q. Consider the following statements:
- One of the major thrust areas of new economic policy 1991-92 was to bring inflation under control and stabilize the economy.
- The policy also aimed at structural reforms and enhancing the efficiency of the economy.
Which of the above is / are correct?
Answer:
Both 1 and 2
Notes: Both are correct statements. The NEP consisted of wide ranging economic reforms. The thrust of policies can broadly be classified into two groups:
- the stabilisation measures
- the structural reform measures
Stabilisation measures are short- term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. On the other hand, structural reform policies are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness by removing the rigidities in various segments of the Indian economy.