Liberalisation means which of the following?

The correct answer is option 2- Reduced government controls and restrictions.

Liberalisation means reduced government controls and restrictions.

The Government of India announced a new industrial policy in July 1991 which sought to liberate the industry from the shackles of the licensing system (liberalisation), drastically reduce the role of the public sector (privatisation) and encourage foreign private participation in industrial development (globalisation).