Question

Liberalization included which of the following?

1. Abolition of Industrial licensing
2. Entry of FII and FDIs in India

Which of the above are correct?

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  None of the above

Answer 1

The correct option is C

Both 1 and 2
Liberalization meant freeing the economy from direct or physical controls imposed by the government.

Few measures which were taken under liberalization were
-Industrial licensing was abolished
-Banks were allowed to raise the funds from the market by the issue of shares
-Setting up of private and foreign banks
-The entry of FIIs was allowed
-Trade policy reforms
-Import licensing was abolished
-Removal of export duties