Introduction

After the end of civil war in March 1921, at the 10th part Congress, Lenin proposed the new
economic policy (NEP) for the Soviet Russia. The policy was brought to recover the failures of
War communism. New economic policy was adopted as a temporary measure not as a
permanent solution.
The stringent centralized method of war Communism that symbolized ‘pure communism’
helped the young soviet state to meet the exigencies of the Civil War but they failed miserably
in rejuvenating the economy and in pacifying the preponderant privately producing peasantry
and the toiling workers.
Linen indicated at the 10th part Congress that in a country of small peasants, unlike the
developed industrial countries, the experience of War communism had proved that it was not
possible to have direct transition to communism.
Consequently, it was necessary that the theoretical thesis and the practical method that
governed war communism be fundamentally altered. Now, new economic policy was not only
your retat, a regrouping of forces a series of political and economic concessions to the
peasantry ,but also the discarding of the the war communist conception of socialism that had
proved to be mistaken.
On the whole New economic policy remained a mixed economy of a dual market
administrative character. The ultimate goal of of creating non market socialist economy was not
non socialist once

Features of new economic policy:

The aims of of new economic policy were to encourage industrialisation, individual initiative
and agricultural development. new economic policy was not concerned with peasantry, but also
so concerned with state industries, Private industries and industrial workers. new economic
policy was a transition from socialism to capitalism for a short period. it brought many changes
in the field of Agriculture, industries, trade, commerce etc.

The central feature of new economic policy who was the the right of individual peasants to sell
their Products freely, whether to private traders or to state agencies. in industry, artisans
workshop and some small factories was rented or sold by the state to individual owners. but
nearly the large scale industry remained in state ownership.

Restriction were removed from internal private retail trading was permitted under certain
restrictions. the provision Of compulsory labour was also removed. currency which had been
almost banned in the period of War communism word adopted again. further, new economic
policy was not totally a liberal policy. Government exclusively controlled the commanding
height, which included Finance, large and medium industries, transportation, banking, foreign
trade and wholesale commerce.

Impact of new economic policy on different sectors:

Agriculture

The initial important measure Of the the new economic policy was the substitution of tax in
kind for requisitioning of surpluses. the tax in kind had been first introduced in 1918; but the
requisitions had continued and tax abandoned.

Tax rebates were given to peasants who increased the area of land sown or productiveness
of their land as a whole. collective responsibility was abolished. state fund was to provide
consumer goods and agricultural equipment no longer for the poorest part of the population, but
solely in exchange for surpluses Voluntarily delivered in excess of the amount of the tax.
freedom to trade surpluses within the limits of local economic exchange was made more
specific.
later with the health of a decree called SOVNARKOM