Correct Answer: Telecommunications

Solution : The correct answer is (c) Telecommunications

As part of the economic reforms in 1991, the Indian government introduced measures to attract foreign direct investment (FDI) into the country. One of the sectors that saw significant liberalization and allowed for automatic approval of FDI was the telecommunications sector.

The policy changes allowed for automatic approval of FDI in the telecommunications sector, which means that foreign investors were able to invest in the sector without requiring prior approval from the government. This move aimed to encourage investment, increase competition, and bring in advanced technology and expertise to improve the quality and reach of telecommunications services in India.