1. NEP
Introduction-
1991 – Reform – LPG – P. M. –
F. M.

2. Pre Reform Features Mixed System, Closed Economy.
Restriction Policies – Industry, banking,
licensing.
Public Sector – Dominant - inefficiency.
Complicated tax system.
No free trade.
High fiscal deficits.
Imbalance of BOP.

3. Why NEP? Fiscal Deficit – Gap between Income & Exp. – Loan
Fiscal Imbalance-
Internal Debt of Central Gov. [GDP]
– 33.3%
– 49.7%
Debt. Trap.
BOP situation –

4. Inflation –
Year Rate of Inflation
– 7%
& above]

5. Structural Reforms Improve the supply side of the economy Measures –
Industrial Reforms
Public Sector Reform & Disinvestment
Trade & Capital Flows Reforms
Financial Sector Reforms
A. Banking Sector Reforms
B. Capital Market Reforms
C. Insurance Sector Reforms