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Q.

NEP came into effect in the year


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a

1946

b

1990

c

1991

d

1970 

answer is C.

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Detailed Solution

Under P. V. Narasimha Rao's direction, India's New Economic Policy (NEP) was introduced in 1991. Manmohan Singh, the finance minister, launched the New Economic Policy to address the country's economic problems in the 1990s. This was per IMF (International Monetary Fund) lending guidelines for India. The country's economy was losing legitimacy, and no country was ready to provide money. The nation's foreign exchange reserves also shrank during this time. The NEP followed LPG - liberalisation, privatisation and globalisation model. The NEP came into effect in 1991, making everlasting changes in the economy.
 
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NEP came into effect in the year