In which year was the New Economic Policy of liberalisation, privatisation and globalisation formally introduced in India?

Introduction / Context:
The New Economic Policy in India refers to the wide ranging economic reforms that shifted the country from a heavily regulated, state controlled system towards a more market oriented economy. Competitive exams often ask the year in which these reforms were formally introduced, because that year marks a turning point in Indian economic history.

Given Data / Assumptions:

- The question mentions the New Economic Policy of India.

- The options list four different years: 1971, 1981, 1991 and 2001.

- We must identify the year when liberalisation, privatisation and globalisation reforms were launched at the national level.

Concept / Approach:
India faced a serious balance of payments crisis in the early nineteen nineties. Foreign exchange reserves were very low and the government approached international institutions for assistance. In response, the government led by Prime Minister P V Narasimha Rao and Finance Minister Manmohan Singh announced a new set of economic policies in 1991. These included reducing industrial licensing, opening up many sectors to private and foreign investment, devaluing the currency to boost exports and reforming trade policies. This entire package is commonly called the New Economic Policy of 1991.

Step-by-Step Solution:
Step 1: Recognise that the phrase New Economic Policy in India usually refers to the reform programme associated with the early nineteen nineties. Step 2: Remember that the balance of payments crisis and pledge of gold reserves took place around 1990 to 1991. Step 3: Connect this timeline with the formation of a new central government in 1991 that implemented structural reforms. Step 4: Compare the option years. The earlier years 1971 and 1981 are far before this crisis, while 2001 is much later and corresponds to a phase of continuation rather than introduction of reforms. Step 5: Conclude that 1991 is the correct year when the New Economic Policy was formally launched.

Verification / Alternative check:
Most Indian economy textbooks and exam guides include a chapter titled Economic Reforms since 1991 or Liberalisation since 1991. That chapter clearly identifies 1991 as the starting year of the New Economic Policy. Many exam questions also use the phrase post 1991 reforms, which further anchors this year in your memory as the turning point.

Why Other Options Are Wrong:

Option A (1971) is associated with events such as the Bangladesh liberation war and nationalisation measures, not with liberalisation and globalisation.

Option B (1981) falls in a period when the Indian economy was still largely regulated, with only limited and gradual changes.

Option D (2001) corresponds to a later stage when India was already implementing reforms and integrating with the global economy, but it is not the introduction year of the New Economic Policy.

Common Pitfalls:
A common confusion arises because some candidates associate economic changes with various dates, such as bank nationalisation in 1969 or earlier planning periods. To avoid this, link the term New Economic Policy firmly with 1991, the year of crisis as well as reform. Another pitfall is mixing it with the term New Industrial Policy, but that policy is also part of the broader 1991 reform package, so the key year remains the same.

Final Answer:
The correct answer is 1991, when the New Economic Policy of economic reforms was formally introduced in India.