The correct answer is (d), all of the above.
The new economic policy of 1991 was a major shift in the economic policy of India. It was adopted in response to the economic crisis of 1991, which was caused by a number of factors, including a decline in foreign exchange reserves, a high fiscal deficit, and a balance of payments crisis.
The main objectives of the new economic policy were to:
- Liberalize the economy by reducing government controls and regulations.
- Privatize public sector enterprises.
- Globalize the economy by opening up the Indian market to foreign investment and trade.
The new economic policy was successful in achieving its objectives. The Indian economy grew at an average rate of 7.5% per year between 1991 and 2011, which is much higher than the growth rate of the previous two decades. The new economic policy also helped to reduce poverty and improve the standard of living of the Indian people.
However, the new economic policy has also had some negative consequences. One of the main criticisms of the new economic policy is that it has led to an increase in inequality. The rich have benefited more from the new economic policy than the poor. Another criticism of the new economic policy is that it has led to environmental degradation. The new economic policy has encouraged the growth of industries that pollute the environment.
Despite these criticisms, the new economic policy has been a major success. It has helped to transform the Indian economy and improve the lives of millions of Indians.
Here is a brief explanation of each option:
- Liberalisation: Liberalisation is the process of reducing government controls and regulations on the economy. This can be done by deregulating industries, privatizing public sector enterprises, and opening up the economy to foreign investment and trade.
- Privatisation: Privatisation is the process of selling government-owned assets to private companies. This can be done through public offerings, private placements, or asset sales.
- Globalisation: Globalisation is the process of increasing economic integration between countries. This can be done through trade liberalization, foreign direct investment, and the movement of people and capital.