India adopted New Economic Policy in 1991 because

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Poor performance by the public sector

Balance of payment deficit

Rising prices

All of the above

answer is D.

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Detailed Solution

India adopted New Economic Policy in 1991 because of the Poor performance of the public sector, the Balance of payment deficit and Rising prices.
The term "new economic policy" refers to various economic reforms or initiatives to boost economic efficiency and production by fostering competition. The Indian government changed its economic strategy in 1991. The new strategy allowed for economic growth in India and connected it to the global economy. This policy shift was motivated by a variety of factors. Due to the underwhelming performance of the public sector businesses, the widening budget deficit, and the growing cost of goods, the government decided to privatise the Indian economy. MNCs' money in developing nations to acquire assets like buildings, land, and machinery stimulates the economy of a developing country, which is why the government embraced open international trade. MNCs provide a solution to the issue of a foreign currency shortage.

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