Beginning of liberalization and economic reforms

✅ Answer: b) 1991 Industrial Policy

Detailed Explanation:
The Industrial Policy of 1991 marked the beginning of major economic reforms in India, introducing liberalization, privatization, and globalization (LPG). It was announced by Dr. Manmohan Singh, the then Finance Minister, under Prime Minister P. V. Narasimha Rao.

Main Features and Points Related:

1. Liberalization:

   • Ended the system of industrial licensing for most industries (except a few like defense and hazardous sectors).

   • Reduced government interference in business decisions.

2. Privatization:

   • Reduced the role of the public sector in industrial development.

   • Allowed private sector participation in many industries earlier reserved for the public sector.

3. Globalization:

   • Opened the Indian economy to foreign direct investment (FDI) and foreign technology collaboration.

   • Encouraged imports and exports to integrate with the global economy.

4. Public Sector Policy Reform:

   • Number of industries reserved for the public sector was reduced from 17 to 8 (later to 3).

   • Focused public sector units on essential and strategic areas.

5. Monopolies and MRTP Act Reform:

   • Removed restrictions on large industrial houses and monopolies.

   • Simplified regulations to encourage competition and efficiency.

6. Industrial Location Policy:

   • Simplified rules for setting up industries except in environmentally sensitive areas.

Conclusion:
The 1991 Industrial Policy was a turning point in India’s economic history. It laid the foundation for rapid industrial growth, modernization, and integration with the global economy.