Comprehension Passage
Read the given paragraph and anwer the following questions.
In 1991, under the leadership of PV Narasimha Rao, India embarked on a transformative journey with the launch of the New Economic Policy. This pivotal moment signified the country's first major opening to global exposure, fundamentally altering the landscape of its economy. The Rao government implemented significant changes, including the reduction of import duties, welcoming private sector involvement, and devaluing the currency to boost exports. This approach, known as the LPG model, encompassed Liberalisation, Privatisation, and Globalisation. Liberalisation entailed deregulating industries, reforming the financial sector, and adjusting trade policies. Privatisation transferred public sector assets to private ownership, inviting foreign direct investment and promoting modernization. Globalisation fostered international integration through the exchange of cultural aspects, ideas, and products, broadening India's participation in the global economy. These strategic components collectively steered India towards a path of economic revitalization and global significance.
In 1991, under the leadership of PV Narasimha Rao, India embarked on a transformative journey with the launch of the New Economic Policy. This pivotal moment signified the country's first major opening to global exposure, fundamentally altering the landscape of its economy. The Rao government implemented significant changes, including the reduction of import duties, welcoming private sector involvement, and devaluing the currency to boost exports. This approach, known as the LPG model, encompassed Liberalisation, Privatisation, and Globalisation. Liberalisation entailed deregulating industries, reforming the financial sector, and adjusting trade policies. Privatisation transferred public sector assets to private ownership, inviting foreign direct investment and promoting modernization. Globalisation fostered international integration through the exchange of cultural aspects, ideas, and products, broadening India's participation in the global economy. These strategic components collectively steered India towards a path of economic revitalization and global significance.
Which of the following is known as liberalization in the economy?
1
Removal of barriers or restrictions set by the government
2
Customs duty hike
3
Raising the price of goods for consumers
4
Creating new opportunities for public sector companies so that they perform better than the private sector