Q.Explain any two positive impacts of the New Economic Policy on Indian business.

The NEP opened Indian business to more competition-driven efficiency and access to foreign capital/technology, among other gains.

Two positive impacts of the NEP on Indian business (any two of the following are acceptable):

1. Increased competition and efficiency. With licensing barriers removed and foreign firms permitted to enter, Indian businesses faced far more competition, which forced them to become more efficient, improve quality, and control costs to survive — raising the overall standard of Indian industry over time.
2. Access to foreign capital and technology. Relaxed FDI rules brought in foreign investment along with modern technology and managerial practices that Indian businesses could adopt or compete against.
3. Wider consumer choice and better quality. Consumers gained access to a wider range of domestic and imported goods at more competitive prices and improved quality. …