Economic liberalisation in India started with

1. substantial changes in industrial licensing policy
2. the convertibility of Indian rupee
3. doing away with procedural formalities for foreign direct investment
4. significant reduction in tax rates

Explanation

Option (a) is correct

• Economic liberalisation in India formally began with the New Economic Policy of 1991. One of its earliest and most important steps was the dismantling of the industrial licensing system, often called the “Licence Raj.” Most industries were freed from compulsory licensing, allowing greater private sector participation and competition. Other reforms such as rupee convertibility, FDI liberalisation, and tax reforms followed later as part of the broader liberalisation process.

Answer: (a) substantial changes in industrial licensing policy