The New Economic Policy (NEP) of 1991 marked a paradigm shift in India's economic strategy, moving away from an inward-looking, protectionist approach towards liberalization, privatization, and globalization (LPG). A key pillar of this policy was the active encouragement of Foreign Direct Investment (FDI) to attract foreign capital, technology, and management expertise, which were seen as crucial for economic growth and modernization.
The new economic policy took this approach toward foreign direct investment __________
Asked in WBCS Main Paper 5 2021 · Topic: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) (Government Policies, Reforms, and Initiatives to Attract FDI/FPI (e.g., PLI schemes, Ease of Doing Business))
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Answer: A. Encouragement
Read the notes: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) →
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