New Economic Policy — Liberalisation, Privatisation, Globalisation
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Policy framework or directive — a strategic document setting direction, principles, and objectives for governance. Guides the design of schemes, legislation, and implementation strategies.
Summary
Finance Minister Manmohan Singh introduced sweeping economic reforms dismantling the License Raj, opening India to foreign investment, reducing import tariffs, and initiating privatisation of state-owned enterprises. This fundamentally transformed India's economy from a closed, state-controlled model to a market-oriented one.
Key Facts
Type Policy
Source Historical Record (Curated)
Published Wednesday, 24 July 1991
Affected Population 1.4 billion citizens, 63 million MSMEs
Key Numbers
GDP: $3.9 trillion (2025 est.)
Fiscal deficit target: 4.4% of GDP
GST collection: Rs 1.87 lakh crore/month avg
Merchandise exports: $437 billion (2024-25)
Key Authorities
Key Stakeholders
Government Context
NDA III BJP-led NDA
Left Centre Right