Many years ago Parle drinks was bought by Coca Cola as Parle's annual turnover was 250 crores, while Coca Cola's advertising budget alone was 400 crores. What policy shift allowed this process?

Liberalisation

The correct answer is Option (3) → Liberalisation

• The acquisition of Parle drinks by Coca-Cola became possible due to the economic policy shift in India in 1991, known as liberalisation.

• Liberalisation refers to the removal of government restrictions and barriers to allow greater participation of private and foreign players in the Indian economy.

• It allowed foreign companies like Coca-Cola to enter and invest in the Indian market, including acquiring Indian brands such as Parle.

• This marked a significant move away from protectionist policies, enabling MNCs to operate freely.