Q.State the meaning of liberalization.

This is a short definitional question needing only the core meaning stated precisely, without extra elaboration on specific measures.

Liberalization refers to the process of reducing government rules, restrictions, and controls on the economic activity of private enterprises. It gives private businesses greater freedom to decide what to produce, how much to produce, how to price their output, and how to organise their operations, without needing prior government permission at every step. It was one of the three reforms (along with privatization and globalization) introduced by India's New Economic Policy of 1991.

Students sometimes give the meaning of globalization or privatization instead when asked specifically about liberalization — remember liberalization is about reducing INTERNAL restrictions on domestic private business, not about ownership transfer (privatization) or world-economy integration (globalization).