Lesson eLearning

Which of the following reforms was introduced in 1991 to remove industrial licensing for most manufacturing activities?

easy MCQ 1 mark Class 12 · Economics · Economic Reforms Since 1991
  1. (a) Public Sector Enterprise disinvestment
  2. (b) Reduction of customs duty
  3. (c) Deregulation of industrial licensing
  4. (d) Introduction of GST
Answer
(c) Deregulation of industrial licensing

The correct answer is (c) Deregulation of industrial licensing — Select option (c) as it precisely describes the reform.

Step-by-step solution

  1. Identify the key liberalisation measures announced in 1991 (why).
  2. Recognise that the removal of industrial licensing for most manufacturing activities was termed 'deregulation of industrial licensing' (why).
  3. Match this feature with the given options (why).
  4. Select option (c) as it precisely describes the reform.
Common mistake: Choosing public‑sector disinvestment instead of licensing deregulation.

Concept tested: Industrial licensing deregulation

Published · How this solution was prepared and checked

← All Economic Reforms Since 1991 questions