Liberalisation reduced government control over economic activities. What did liberalisation in 1991 primarily aim to eliminate?

Correct option is A

The correct answer is (a) Industrial licensing and quota system
Explanation:
• 1991 reforms aimed to dismantle the License Raj—removing extensive industrial licensing and quotas.
• Reduced permits, controls and bureaucratic hurdles for investment and production.
• Encouraged private sector participation and competition.
• Deregulation complemented by liberal trade and FDI policies.
• A core objective was to stimulate growth and efficiency.
Information Booster:
• Some strategic sectors (defence, explosives) retained licensing requirements.
Additional Knowledge:
(b) Banking reforms were a separate set of measures.
(c) Agricultural subsidies continued, not eliminated.
(d) Public sector reforms were gradual, not the immediate primary target.