Give arguments in favour of New Economic Policy.

1. As a result of economic reforms, the growth rate of the economy has also gone up. Production of both agricultural and industrial sector has increased.  

2. Indian economy is marked by a number of inefficiences. The new economic policy will improve the efficioncy. New economic policy will create pressures of competition which help in improving efficiency level.               

3. As a result of new economic policy, export growth rate has increased, foreign direct investment has risen, and the ratio of external debt to GDP has also fallen. 

4. It is expected that fiscal deficit will come down and inflation rate will remain under control. 

5. The new economic policy has helped to tide over the immediate balance of payment crisis.