A critical evaluation of Basics of New Industrial Policy 1991 on Foreign Direct Investment

Abstract

In 1991, the financial policies of the Indian economy underwent a significant shift with the introduction of LPG (Liberalisation, Privatisation and Globalisation). On July 24, 1991, the government formulated a new economic policy and unveiled it. The goal of implementing this programme was to strengthen and expand the Indian economy. The nation had a serious financial crisis in 1990, which prompted the implementation of this legislation as a precautionary measure. The government of India established the "New Industrial Policy" (NIP) in 1991 with the goal of liberalising the Indian economy. The changes had a major impact on the business, manufacturing, and financial services industries, as well as on general economic growth.