Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India ?

The New Economic Policy separated short-term macro “stabilization” measures from longer-term “structural adjustment.” Stabilization aimed to correct fiscal and balance-of-payments weaknesses rapidly — e.g., controlling inflation, reducing the fiscal deficit and devaluing the rupee to stabilise the economy — representing immediate macroeconomic adjustments [1]. Fiscal stabilisation steps taken (removal/restructuring of subsidies, phasing out budget support to loss-making PSUs, and cutting fiscal deficit) exemplify targeted, quicker measures to create conditions for reforms [2]. Structural adjustment, by contrast, sought to remove sectoral rigidities through liberalisation, privatisation and globalisation as a sustained, multi-step reform package implemented over time [3].

Sources

1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Economic Reform > p. 743
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > Following lists down the details of the major reforms carried out in June-July 1991: > p. 215
3. [3] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 17: Contemporary Issues > GLOBALISATION AND INDIAN ECONOMY > p. 82