Description

Introduction

During the 1970s and 1980s, India experienced an unprecedented financial crisis. By 1991, this had developed into a catastrophic economic and financial crisis. The government had no choice but to alter the structure of the economy to escape this problem. These modifications helped lift the economy out of a severe fiscal crisis and set it on the path to self-sustaining development. The administration implemented both short-term and long-term measures to restructure the economy. The short-term measures were known as the Economic Stabilization Programme (ESP), while the long-term measures were referred to as the Structural Adjustment Programme (SAP) (SAP). The name "New Economic Policy" began to be applied to all of these measures. People believed that the "New Economic Policy" would correct all economic issues.