Discussion
The aim of new economic policy in India is :
(a) Reduce inflation
(b) Encourage foreign direct investment
(c) Achieve higher economic growth
(d) Enhance inflation and tax rates
Codes :
Answer: D
The aims are (a), (b) and (c), so the answer is (a), (b), (c).
The New Economic Policy of 1991 was launched in a balance-of-payments crisis, with inflation in double digits. Its liberalisation, privatisation and globalisation measures aimed to bring inflation down and stabilise the economy (a), to open the economy to foreign direct investment (b), and to lift the economy onto a higher growth path (c).
Statement (d) is the reverse of the policy: it sought to reduce inflation, and the tax reforms that followed cut income tax, corporate tax and customs rates. So any code including (d), or leaving out (b), is wrong.
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