MRS PREETI MITTAL
PGT ECONOMICS
ARMY PUBLIC
SCHOOL NO. 1
JABALPUR(MP)
,NEW ECONOMIC POLICY 1991
In 1991 , the government of India initiated
a series of economic reforms to pull the
economy out of the crisis of 90’s.
These reforms came to be known as New
Economic Policy.(NEP)
NEP was started by Prime minister Mr.
P.V. Narshimha Rao and that time Finance
minister was Dr. Manmohan Singh.
, NEED FOR ECONOMIC REFORMS
In 1991 economic reforms were
introduced in India because 1991 was the
year of crisis for the Indian economy. It
is clear from the following facts:
a. national income was growing at the rate
of 0.8%.
b. Balance of payment crisis was to the
extent of 10000 crores.
c. India sold large amount of gold to Bank of
England.
, d. Foreign exchange reserves were only
1.8 billion dollars which were sufficient
for three weeks imports only.
e. Fiscal deficit was more than 7.5%.
f. Trade relation with soviet block had
broken down.
g.Remittances from Non-Resident Indians
stopped due to war in Arab countries.
PGT ECONOMICS
ARMY PUBLIC
SCHOOL NO. 1
JABALPUR(MP)
,NEW ECONOMIC POLICY 1991
In 1991 , the government of India initiated
a series of economic reforms to pull the
economy out of the crisis of 90’s.
These reforms came to be known as New
Economic Policy.(NEP)
NEP was started by Prime minister Mr.
P.V. Narshimha Rao and that time Finance
minister was Dr. Manmohan Singh.
, NEED FOR ECONOMIC REFORMS
In 1991 economic reforms were
introduced in India because 1991 was the
year of crisis for the Indian economy. It
is clear from the following facts:
a. national income was growing at the rate
of 0.8%.
b. Balance of payment crisis was to the
extent of 10000 crores.
c. India sold large amount of gold to Bank of
England.
, d. Foreign exchange reserves were only
1.8 billion dollars which were sufficient
for three weeks imports only.
e. Fiscal deficit was more than 7.5%.
f. Trade relation with soviet block had
broken down.
g.Remittances from Non-Resident Indians
stopped due to war in Arab countries.
