Question

Liberalization is ....................

• A. The government's liberal outlook for the people.
• B. The process of removal of barriers and restrictions by the government.
• C. Generosity in international relations
• D. Lending

Hint:

Remember: Liberalization in India is associated with the 1991 reforms that reduced government control and promoted free-market policies.

Answer 1

The Correct Option is B

Step 1: Understanding Liberalization
Liberalization refers to the relaxation of government restrictions in areas of social, political, and economic policies. In economics, it particularly means reducing government control over trade, markets, and industries.

Step 2: Indian context
In India, liberalization became prominent after the economic reforms of 1991, when the government reduced licensing requirements, import restrictions, and opened up the economy for private and foreign investment.

Step 3: Elimination of incorrect options
- (A) Government's liberal outlook: Too vague, not related to economy.
- (C) Generosity in international relations: Refers to diplomacy, not liberalization.
- (D) Lending: Refers to finance, not liberalization.

Step 4: Conclusion
Hence, liberalization is best defined as the process of removal of barriers and restrictions by the government.
\[ \boxed{\text{The process of removal of barriers and restrictions by the government.}} \]