Which sectors were largely excluded from industrial licensing after 1991?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Alcohol, Cigarettes, Explosives.
Following the New Economic Policy of 1991, India underwent massive "LPG" (Liberalization, Privatization, and Globalization) reforms. Industrial licensing was abolished for almost all sectors to encourage growth, except for a few deemed sensitive for social, health, or security reasons. These primarily included alcohol, cigarettes, hazardous chemicals, industrial explosives, and electronics/aerospace/defense equipment. This shift allowed private players to enter most industries without bureaucratic hurdles, significantly boosting the Indian economy's competitiveness and ease of doing business.