Which of the following statement is correct?

Freedom was given to traders in fixing prices of goods and services.

The correct answer is option (4)- Freedom was given to traders in fixing prices of goods and services.

Licensing was made compulsory in most of industries by the Government in 1991. This statement is incorrect as The Government reduced the number of industries under compulsory licensing to six. It abolished licensing requirement in most of the industries except a short list.

Restrictions were imposed on movements of goods and services by the Government in 1991. This statement is incorrect as removal of restrictions on the movement of goods and services is done by Government in 1991.

Taxes were imposed and the complicated system of Export-Import trade was established by the Government in 1991. This statement is incorrect as reduction in tax rates and lifting of unnecessary controls over the economy and simplifying procedures for imports and exports under the LPG policy 1991.

Freedom was given to traders in fixing prices of goods and services. This statement is correct.

The economic reforms that were introduced were aimed at liberalising the Indian business and industry from all unnecessary controls and restrictions. They signalled the end of the licence-pemit-quota raj Liberalisation of the Indian industry has taken place with respect to:

(i) abolishing licensing requirement in most of the industries except a short list,

(ii) freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities,

(iii) removal of restrictions on the movement of goods and services,

(iv) freedom in fixing the prices of goods services

(v) reduction in tax rates and lifting of unnecessary controls over the economy,

(vi) simplifying procedures for imports and experts, and

(vii) making it easier to attract foreign capital and technology to India.