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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. Liberalisation of FDI in service sector
  2. Introduction of single window clearance system
  3. Removal of industrial licensing for most manufacturing activities
  4. Implementation of GST
Answer
Removal of industrial licensing for most manufacturing activities

The correct answer is Removal of industrial licensing for most manufacturing activities — Step 3: Select the option that matches this reform.

Step-by-step solution

  1. Step 1: Identify the 1991 reforms that dealt with industrial licensing.
  2. Step 2: Recall that the 1991 policy aimed to deregulate manufacturing by removing the industrial licensing requirement for the majority of sectors.
  3. Step 3: Select the option that matches this reform.
Common mistake: Confusing the licensing removal with the introduction of GST or FDI liberalisation

Concept tested: Industrial licensing removal

Published · How this solution was prepared and checked

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