Which of the following was/were the feature(s) of Lenin’s New Economic

Which of the following was/were the feature(s) of Lenin’s New Economic Policy (NEP) for the Soviet Union ?

  • 1. Private retail trading was strictly forbidden
  • 2. Private enterprise was strictly forbidden
1, 2 and 4
3 only
2 and 3 only
1, 2 and 3
This question was previously asked in
UPSC NDA-2 – 2016
Lenin’s New Economic Policy (NEP), introduced in 1921, was a temporary move away from strict state control to revive the economy.
Statement 1: “Private retail trading was strictly forbidden”. This was a feature of War Communism (1918-1921), not NEP. NEP *allowed* small-scale private retail trade.
Statement 2: “Private enterprise was strictly forbidden”. This was largely a feature of War Communism. NEP *allowed* small-scale private enterprise.
Statement 3: “State control was maintained over heavy industry and banking”. This is a correct feature of NEP. The state retained control over the “commanding heights” of the economy (heavy industry, banking, foreign trade).
Statement 4: “Peasants were allowed to sell their surplus produce”. This is a correct feature of NEP. The system of forced requisitioning (prodrazvyorstka) from War Communism was replaced by a tax in kind (prodnalog), allowing peasants to sell their surplus on the market.
The correct features among the typical statements are 3 and 4. Looking at the provided options, only option B (“3 only”) consists solely of a correct feature (Statement 3), given that statements 1 and 2 are incorrect features of NEP. Although statement 4 is also a correct feature, it is not offered as “3 and 4 only”, and is included in option A which contains incorrect statements.
NEP allowed limited private trade and enterprise (small scale), replaced grain requisitioning with a tax allowing surplus sales, and maintained state control over major industries and finance.
NEP was a pragmatic policy aimed at increasing agricultural and industrial output by reintroducing market mechanisms. It was successful in reviving the Soviet economy in the 1920s but was eventually phased out under Stalin with the implementation of five-year plans and collectivization.