**Objective of the New Economic Policy of 1991**

The New Economic Policy (NEP) of 1991 was a set of economic reforms introduced by the Indian government to revitalize the stagnant economy and promote growth. It aimed to address the various challenges faced by the Indian economy at that time, such as high inflation, fiscal deficit, balance of payment crisis, and low foreign exchange reserves. The primary objective of the NEP was to liberalize and open up the Indian economy to foreign investments and global markets, and to shift towards a more market-oriented approach. Let us discuss the objectives of the NEP in detail:

1. **Liberalization:** The NEP aimed to liberalize various sectors of the economy, reducing government control and intervention. It aimed to dismantle the License Raj system, which involved complex regulations and procedures for businesses, and replace it with a more liberal and efficient system.

2. **Privatization:** Another objective was to encourage privatization of state-owned enterprises. The government aimed to reduce its role in running businesses and allow private players to take a larger role in the economy. This was expected to improve efficiency, productivity, and competitiveness.

3. **Foreign Direct Investment (FDI):** The NEP sought to attract foreign investment into the country. It aimed to remove barriers and restrictions on FDI, allowing foreign companies to invest in various sectors of the economy. The inflow of foreign capital was expected to bring in new technology, expertise, and job opportunities.

4. **Globalization:** The NEP aimed to integrate the Indian economy with the global economy. It encouraged exports and imports, and aimed to make India a competitive player in the international market. This involved reducing trade barriers, tariffs, and promoting free trade.

5. **Stabilization:** The NEP focused on stabilizing the economy by addressing the issues of high inflation, fiscal deficit, and balance of payment crisis. The government aimed to bring down inflation through monetary measures and fiscal discipline. It also aimed to reduce the fiscal deficit by curbing government expenditure and increasing revenue generation.

6. **Infrastructure Development:** The NEP aimed to improve the infrastructure of the country. It recognized the importance of infrastructure in attracting investments and promoting economic growth. The government focused on developing transportation, power, and communication networks.

Overall, the objective of the New Economic Policy of 1991 was to bring about structural changes in the Indian economy and pave the way for sustainable economic growth. It aimed to create a more competitive and efficient business environment, attract foreign investment, and integrate India with the global economy. The policy reforms introduced in 1991 laid the foundation for the economic growth that India has witnessed in the subsequent years.