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India is a welfare state.The constitutional goal is to transform India into an egalitarian society.The various economic policies of the independent India prior to 1991 did not contribute to the desired objectives or goals. In the year 1991 the country’s policy makers opted for a change in the economic policy as the country faced various economic problems like very high price rise,unemployment, negative balance of payments, etc. Adding fuel to the problem, India depends heavily on imported oil for its energy requirements from gulf countries paying a huge sum of forex resources. Thus comes the new economic policy 1991. The following article analyses the pros and cons of the new policy and other.