What term denotes the reduction of government control over India's economy?

• A. Liberalization of Trade Regimes
• B. Privatization Drive
• C. Economic Liberalization (1991)
• D. Service Sector Growth

Answer: (C)

Reducing government control over the economy is described as economic liberalization. It signals a shift toward market-driven decisions, with fewer licensing requirements, deregulation, and openness to private and foreign investment. In India, the 1991 reforms embody this idea, broadening deregulation, easing trade and investment rules, and privatizing many state-owned enterprises. This term best captures the overall process of opening up the economy and cutting state intervention. Liberalization of trade regimes is part of the broader liberalization but focuses specifically on trade barriers, not the full scope. The privatization drive targets selling public assets to private owners, which is a tool within liberalization but not the whole concept. Service sector growth is an outcome of liberalization, not the policy shift itself.