Read the given passage carefully and answer the next five questions.
In many ways it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation and also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly, these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both State regulation and State subsidies. The existing process of Globalisation in this sense does have a political vision as much as an economic vision.
What does the term 'liberalisation policy' refer to in the given passage?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → De-regulation of market forces
Option (2) Regulation of market forces — Incorrect. To regulate the market is to put it under State rules and controls. Liberalisation removes such controls, so this is its opposite.
Option (4) De-regulation of market forces — Correct. The liberalisation policy is one of the neo-liberal measures. These policies want a free reign to market forces and are critical of State regulation, so liberalisation means taking away the controls on the market, that is, de-regulation.
NCERT (2025-26): “Globalisation and Political Changes … In many ways it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation. And also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both state regulation and state subsidies. The existing process of globalisation in this sense does have a political vision as much as an economic vision.…” |