Pooja was reading a book on Indian Economics and learned about the following reforms in India in 1991:

a) Deregulation of Industrial Sector

b) Financial Sector Reforms

c) Tax Reforms

d) Foreign Exchange Reforms

e) Trade and Investment Policy Reforms.

What is the phenomenon that sums up these reforms known as?

Liberalisation

The correct answer is Option 1: Liberalisation

These reforms of 1991 — deregulation of industry, financial sector reforms, tax reforms, foreign exchange reforms, and trade & investment policy reforms — together are mainly known as Liberalisation, because they focused on reducing government control and opening the economy to market forces.

Liberalisation was introduced to put an end to the restrictions and open up various sectors of the economy. Various reforms included:

1. Deregulation of Industrial Sector
2. Financial Sector Reforms
3. Tax Reforms
4. Foreign Exchange Reforms
5. Trade and Investment Policy Reforms