The correct answer is option (b).
Liberalisation did not form part of the early phase of India’s development policy.
It was only later, particularly from 1991 onwards, that the government made far reaching changes in the economic policies. Barriers on foreign trade and foreign investments were removed to a large extent. Government allowed easy import and export of goods and foreign companies were permitted to set up factories and industries in the country. Government has encouraged MNCs to establish their production units and has also taken steps to attract foreign investments, like creating special economic zones. It has encouraged more private sectors to come up bringing and end to the license raj.