The correct answer is: D. All of the above.
Economic liberalism started in India in the early 1990s, with the introduction of a series of economic reforms. These reforms included substantial changes in the licensing policy, removal of procedural hurdles for foreign direct investment, and significant reductions in the import tax rates.
The licensing policy was a system that required businesses to obtain a license from the government before they could start or expand operations. This system was very restrictive and made it difficult for businesses to operate. The reforms abolished the licensing policy, which made it easier for businesses to start and expand operations.
The reforms also removed procedural hurdles for foreign direct investment. This made it easier for foreign companies to invest in India. The reforms also significantly reduced the import tax rates. This made it cheaper for businesses to import goods and services.
The economic reforms of the early 1990s had a significant impact on the Indian economy. They led to increased economic growth, higher levels of foreign investment, and a more open and competitive economy.
Here are some additional details about each of the options:
- Option A: Substantial changes in the licensing policy. The licensing policy was a system that required businesses to obtain a license from the government before they could start or expand operations. This system was very restrictive and made it difficult for businesses to operate. The reforms abolished the licensing policy, which made it easier for businesses to start and expand operations.
- Option B: Removing procedural hurdles for foreign direct investment. The reforms also removed procedural hurdles for foreign direct investment. This made it easier for foreign companies to invest in India.
- Option C: Significantly reducing the import tax rates. The reforms also significantly reduced the import tax rates. This made it cheaper for businesses to import goods and services.