Economics · Class 11 Commerce
Ch 9Economic Policy of India Since 1991 — Class 11 Economics, concept-first.
The previous chapter looked at Poverty in India — how deprivation is measured and why it persists. This chapter steps back to ask a bigger question: what economic model did India actually follow for the first four decades after Independence, why did that model run into a genuine crisis by 1990-91, and what fundamental…
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Background and Objectives of the New Economic Policy 1991
By 1990–91, India's heavily regulated, licence-based mixed-economy model had produced a severe Balance of Payments crisis: large fiscal deficits, an oil-price and remittance shock from the Gulf War, weak exports, and a c…
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Chapter contents
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Overview
The previous chapter looked at Poverty in India — how deprivation is measured and why it persists. This chapter steps back to ask a bigger question: what economic model did India actually follow for t…
The 1991 Economic Crisis — Background to the New Economic Policy
For roughly four decades after Independence, India followed a mixed economy model with a strong emphasis on the public sector, centralised Five-Year Plan-based investment, industrial licensing (popula…
New Economic Policy 1991 — Meaning and Objectives
The New Economic Policy (NEP), announced in July 1991, is the umbrella name for the sweeping package of economic reforms India introduced in response to the crisis described above.
Liberalisation
Liberalisation refers to the process of freeing the domestic economy from excessive government rules, regulations, and controls, so that market forces — rather than bureaucratic permission — govern mo…
Privatisation
Privatisation refers to the process of reducing the role and ownership of the public sector in the economy, by transferring the ownership, management, or control of public-sector undertakings (PSUs),…
Globalisation
Globalisation refers to the process of integrating a country's economy with the economies of the rest of the world, through freer flows of trade (goods and services), investment (capital), and technol…
Positive Impact and Criticisms of the LPG Reforms
The LPG reforms of 1991 are among the most consequential policy decisions in independent India's economic history, and, appropriately for a topic this significant, economists and policymakers continue…
From Planning Commission to NITI Aayog
The Planning Commission, set up in 1950, was the body responsible for formulating India's Five-Year Plans — the centralised, top-down planning framework that had guided investment and resource allocat…
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- Q9Explain the background and causes of the 1991 economic crisis in India.Free
- Q10Explain the meaning and main measures of Liberalisation undertaken under the New Economic Policy 1991.Free
- Q11Explain the meaning of Globalisation and describe the main steps taken by India to globalise its economy after 1991.Preview
- Q12"The 1991 economic reforms had both positive impacts and genuine limitations." Discuss.Preview