Which of the following policy measures is NOT a step towards liberalisation?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Enhancement in tariffs.
Enhancement in tariffs is NOT a step towards liberalization. Liberalization generally involves measures that reduce trade barriers, promote foreign investment, and encourage free-market practices. Increasing tariffs, on the other hand, raises trade barriers and can be contrary to the goals of liberalization. The other measures—such as increasing the equity limit of foreign investment, removing industrial licensing for certain industries, and removing the requirement of registration for certain industries—are all steps aimed at promoting liberalization and encouraging economic growth.