When was the New Economic Policy (NEP) introduced by the then Prime Minister Dr Manmohan Singh?

Correct option is A

The New Economic Policy (NEP) was introduced on July 24, 1991, by the then Finance Minister Dr. Manmohan Singh under the leadership of Prime Minister P.V. Narasimha Rao. The policy marked the liberalization, privatization, and globalization (LPG) of the Indian economy, aimed at alleviating the balance of payments crisis and boosting economic growth.

Information Booster

1. The NEP abolished the License Raj system.
2. It opened the economy to foreign direct investment (FDI).
3. The rupee was devalued to encourage exports.
4. Public sector dominance was reduced, encouraging private enterprises.
5. Reforms were introduced in banking, taxation, and industrial policy.
6. The policy laid the foundation for India's modern economic structure.

Additional Knowledge

• September 24, 1991: Not a relevant date for NEP.
• June 24, 1991: Budget discussions were ongoing during this period.
• August 24, 1991: No significant economic event occurred.
• The 1991 reforms were necessitated by high fiscal deficits, low forex reserves, and a growing trade imbalance.