Why was " Liberalisation " introduced in the year 1991, during the economic crisis?
Answer & explanation
Correct answer: option 2
After independence, Indian government had put a lot of restrictions in production of goods and services. Limiting the company from producing and expanding its production hampered the process of growth and development of Indian economy to its full potential. Thus, making liberalisation reforms an essential part of New Economic Policy, which aimed at putting an end to these restrictions ( licensing ) and opening up of various sectors of economy.