What are the Achievements of New Economic Policy of India?

1. Increase in National Product: Before the inception of new economic policy, the growth rate in real national income was 4.7%. On the enforcement of new economic policy, growth rate reduced to 0.6 percent. In 1993-94, growth rate rose to 5.0 percent at 1993-94 prices and in 1996-97 it rose to 8.2 percent. However, in 2000-01 growth rate was witnessed to be 6.2 percent. 2. Imports: In the wake of new economic policy, growth rate of imports witnessed wide fluctuations. In 1991-92 growth rates of imports declined to 11% against 22% in 1990-91. But, in the following year i.e. 199293, it jumped to 32.4% thereafter fell to 15% in 1993-94. However, in the fiscal year of 2001-02, growth rate of imports was witnessed to be 14.5%. 3. Fiscal Deficit: The main thrust of new economic policy is to bring down fiscal deficit to the extent of 3 percent of GDP. In 1991-92, fiscal deficit came down to 5.9% and further to 5.2% in 1992-93. No doubt, after the launching of economic policy fiscal deficit has reduced but still Govt, is far away from its target. As in 1995-96, fiscal deficit rose to 7.9% against the target of 4.7%. Moreover, it again moved to 6.4% in 2000-01. 4. Foreign Currency Reserves: New economic reforms have favourable impact on foreign currency reserves which had fallen to the extent of Rs. 6,251 crore in 1989-90. But, thanks to new economic reforms that foreign exchange reserves have increased to Rs. 58,446 crore in 1995-96 and 1, 97,204 crore in 2000-01. 5. Agricultural Production: Agricultural production has also been favourably affected by new economic reforms. Before, the implementation of new economic reforms, growth rate of agricultural production was 3%. But, in 1991-92, growth rate got down to 1.9%. In other words, we can say that within the two consecutive years mentioned above growth rate witnessed a downward trend of 4.5%. In 1992-93, growth rate of agricultural production increased to 6.6% and 6.3% in 2000-01.