Which of the following was a primary objective of 'Liberalization' within the New Economic Policy (NEP) of 1991?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Abolishing industrial licensing for most industries to encourage private entry.
Before 1991, the "License Raj" mandated complex government approvals for starting or expanding businesses.
Liberalization aimed to end this bureaucratic hurdle, allowing the private sector to operate more freely and compete globally.
This shift included reducing the number of industries reserved for the public sector, scrapping the restrictive MRTP Act limits on asset size, and lowering customs duties to integrate India with the world economy, rather than increasing them.