Economic liberalization mainly affects which sector?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Primary, Secondary, and Tertiary.
Economic liberalization impacts all three sectors of an economy by reducing government restrictions and encouraging private participation:
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Primary Sector: Changes in trade policies and subsidies affect agriculture and mining, facilitating easier exports of raw materials and the entry of global agro-tech.
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Secondary Sector: Delicensing and the removal of the "License Raj" boost manufacturing by allowing industries to scale up and attract Foreign Direct Investment (FDI).
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Tertiary Sector: This sector (Services) usually sees the most rapid growth due to liberalized norms in banking, telecommunications, and IT, integrating the domestic market with the global economy.