The New Economic Policy – 1921 of Lenin had influenced the policies adopted by India soon after independence. Evaluate.

Sample Answer


The New Economic Policy (NEP) of 1921, introduced by Vladimir Lenin in the Soviet Union, was a pragmatic response to the economic challenges post the Russian Civil War. This policy, which combined state control with elements of capitalism, has been seen by many as having influenced India’s economic strategies post-independence.


State Control and Planning:

  • Five-Year Plans: Drawing inspiration from the Soviet model, India initiated its Five-Year Plans in 1951, aiming for comprehensive socio-economic development.
  • Public Sector Dominance: Mirroring the NEP’s emphasis on state control over key sectors, India established large public sector undertakings like Steel Authority of India Limited (SAIL) and Bharat Heavy Electricals Limited (BHEL).

Private Enterprise and Market Freedom:

  • Role of Private Sector: While strategic sectors were under state control, India, like the NEP, allowed the private sector to coexist, albeit with restrictions.
  • License Raj: India’s regulatory framework, known as the License Raj, was more restrictive than the NEP, requiring businesses to obtain numerous licenses.

Agricultural Reforms:

  • Land Reforms: Both the NEP and India’s post-independence policies emphasized land reforms. India’s land ceiling acts and the abolition of the zamindari system aimed to redistribute land and reduce inequalities.
  • Green Revolution: India’s push for agricultural self-sufficiency in the 1960s paralleled the NEP’s focus on agricultural revival.

Divergences and Unique Aspects:

  • While both policies placed a strong emphasis on state control and private enterprise, India’s strategy was more restrictive because of its colonial past and the need to safeguard domestic industries.
  • India’s non-alignment movement and its unique socio-political context also shaped its economic policies, making them distinct from the Soviet model in several aspects.


The New Economic Policy of 1921 undeniably influenced India’s economic framework post-independence. However, India’s policies were not mere imitations; they were adapted to the nation’s unique challenges, aspirations, and historical context. While the NEP provided a blueprint, India’s approach was a blend of various global economic models, tailored to its specific needs.

Free UPSC MasterClass
This is default text for notification bar