Question

Which of the following establishes the fact that India has adopted the policy of liberalisation?

• A. Poverty alleviation programmes were launched.
• B. Beginning of five-year planning.
• C. Restriction on import of most of the goods is removed.
• D. Announcement of support price for agricultural products.

Answer 1

The correct option is C Restriction on import of most of the goods is removed.

Economic liberalization refers to a country "opening up" to the rest of the world with regards to trade, regulations, taxation and other areas that generally affect business in the country. It was initiated in 1991 with the goal of making the economy more market and service-oriented. One of its characteristics is removal of restrictions on import of most of the goods.