Two development stages can be distinguished in the economic history of independent India: the period of the so-called Indian socialism (also-referred to as Nehruism) in the years 1947-1980, and the period of economic reforms (1981-2001), i.e. revision of the "Indian socialism" and creation of a new economic order which has been called "the Indian social market economy". In the latter period, special attention should be paid to economic reforms initiated by the Narasimha Rao government in 1991 and referred to as the "new economic policy". They are comparable to the systemic transition in Central and Eastern Europe. As a result of the "new economic policy", the economic system of India has been transformed in an evolutionary way involving cautious, step-by-step reforms. The "new economic policy" brought about a significant acceleration of growth and modernisation of the Indian economy. In the 1990s, the Indian economy was one of the fastest-growing economies in the world.