Correct option is C
Under the liberalisation policy introduced in 1991, India embarked on a series of economic reforms to open up the economy and make it more market-oriented. These reforms primarily focused on the industrial sector and the financial sector.
- Industrial Sector Reforms: The government reduced the licensing requirements (the License Raj system), simplified regulations, and promoted competition. This led to the privatization of several public sector enterprises and opened up many sectors to private and foreign investment.
- Financial Sector Reforms: Reforms included the liberalization of interest rates, introduction of new banking and financial services, strengthening of financial institutions, and improvement in the functioning of stock markets. Institutions like the SEBI (Securities and Exchange Board of India) were strengthened to regulate capital markets.
These reforms aimed at making India’s economy more competitive, efficient, and attractive to global investors.
Additional Information:
- The agricultural sector reforms were not a major focus of the initial liberalisation process, though agricultural reforms have been introduced over time through various government policies.
- The industrial and financial sectors were prioritized for reform as they were crucial for India's integration into the global market.
Other Options:
- Industrial and agricultural sector reforms: While industrial reforms were a key part of liberalisation, agricultural sector reforms were not emphasized in the early stages of the liberalisation process.
- Industrial, agricultural and financial sector reforms: Agricultural reforms were not a primary focus during the 1991 liberalisation process.
- Agricultural and financial sector reforms: While financial reforms were a significant part of liberalisation, agricultural reforms were not the central component of the policy.
