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Question

Which reform enabled MNCs to enter India?

This question was previously asked in
SSC CGL 2025 Tier 2 Paper 1 Question Paper (19-Jan-2026)
The correct answer is

Globalisation

The 1991 economic reforms — commonly summarised as Liberalisation, Privatisation and Globalisation (LPG) — opened the Indian economy to foreign trade and investment. Globalisation, in particular, dismantled the licence-permit raj and the restrictive FERA regime, allowing multinational corporations (MNCs) to enter India and set up operations.

Of the other options: Land reform targeted agricultural landholdings; Labour law reforms govern industrial relations and have not by themselves opened India to MNCs; Swadeshi is the opposite philosophy — promoting domestic over foreign goods.

Hence the correct answer is Globalisation.

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