Though NEP, 1991 brought many achievements to the economy, it has also brought failures in many areas: 

Failures of Economic Policy, 1991: 

Lack of self-sufficiency: Globalisation led to the diversion of production to export-oriented products which were demanded globally. This failed to achieve self-sufficiency in the home country.

Adverse effect on the domestic market: Imported goods were cheaper and were flooded in the Indian market due to liberal import policy. Thus, domestic markets were adversely affected due to globalisation and liberalisation. 

Affected poor farmers: Poor farmers were not able to produce goods as per the export standards due to a lack of capital. So, the benefits of globalisation and liberalisation reached rich farmers only. This led to the selling of lands by small farmers for their survival.

Unhealthy competition: Indian companies could not match the competition with multinational companies and as a result, many Indian Companies had to declare themselves as ‘sick units’ or had to close down the industry-leading to unemployment and poverty in the society. 

Neglects welfare aspect: Privatisation led to an increase in prices of products and services, as private firms are profitoriented and not welfare-oriented. They are more interested in their profits rather than the welfare of society. Thus, the economic policy of 1991 failed to achieve the welfare of the masses. 

Unemployment: Closing down of companies due to unhealthy competition by multinational companies, led to unemployment in the economy. An increase in the unemployment level in the country led to poverty and inequality.