Which of the following pairs is correctly matched?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Privatisation – Referring sick public enterprises to the Board of Industrial and Financial Reconstruction

Option (1) Privatisation – Referring sick public enterprises to the Board of Industrial and Financial Reconstruction — Correct. To reduce the role of the public sector, the government decided to refer the loss making and sick enterprises to this Board.

Option (2) Liberalisation – Planned disinvestment of public sector industrial enterprises — Incorrect. Planned disinvestment is a step of privatisation.

Option (3) Globalisation – Freedom in fixing the prices of goods and services — Incorrect. Freedom in fixing prices is a part of liberalisation.

Option (4) Liberalisation – Integration of the various economies of the world leading towards the emergence of a cohesive global economy — Incorrect. This is the meaning of globalisation.

NCERT (2026-27 Edition): “Liberalisation: 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,”

NCERT extract

“Globalisation: Globalisation means the integration of the various economies of the world leading towards the emergence of a cohesive global economy. …”