Correct option is C
The Correct Answer is: (c) Reduction in control of government over the private sector
Explanation:
Liberalisation refers to the process of reducing government control over economic activities and encouraging greater participation of the private sector in business and trade.
It was a key component of India’s economic reforms of 1991, aimed at boosting economic growth, increasing competition, and improving efficiency.
Liberalisation involved:
- Reducing trade barriers such as import duties and export restrictions.
- Easing industrial licensing (removal of the License Raj).
- Encouraging foreign investment (FDI and FII).
- Privatization of public sector enterprises in certain sectors.
- Allowing private companies to operate in previously restricted sectors.
Information Booster:
- India’s Liberalisation policy was introduced in 1991 under the leadership of Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.
- It was part of the LPG (Liberalisation, Privatisation, and Globalisation) reforms.
- Foreign Direct Investment (FDI) norms were eased, allowing international companies to invest in India.
- Economic growth rate increased, and India became a major destination for global business.
- Stock markets expanded, leading to better capital formation.
- IT and services sectors flourished due to fewer restrictions.
- Foreign exchange reserves improved significantly.
English
25 Questions
75 Marks
20 Mins
