Removing barriers or restrictions set by the government is known as:

The correct answer is Liberalisation.

Key Points

• Liberalisation involves the removal of government restrictions on economic activities, such as trade, investment, and business regulations.
• It has been a key component of India's economic reforms, particularly since 1991.
• Liberalisation often includes reducing tariffs, freeing up markets, and increasing competition in various sectors.
• The economic reforms led to a significant increase in India's growth rate and attracted foreign investment.

Additional Information

• Globalisation
  • Refers to the increasing interconnectedness of national economies through trade, investment, and technology.
  • It complements liberalisation by expanding markets and allowing international collaboration.
• Privatisation
  • Involves the transfer of state-owned enterprises to the private sector.
  • It is often pursued alongside liberalisation to reduce government control and increase efficiency.
• Economic Reforms of 1991
  • These reforms marked the beginning of liberalisation in India, which opened the economy to global competition and foreign investments.
• Trade Liberalisation
  • Involves reducing tariffs and trade barriers to encourage free trade across borders.
  • This allows consumers to access a wider range of goods at competitive prices.