Step 1: Governments can use trade barriers such as taxes on imports and licensing to regulate foreign trade. Step 2: Removing these barriers or restrictions set by the government is what is known as LIBERALISATION. Step 3: With liberalisation of trade, businesses are allowed to make their own decisions about what they wish to import or export - the government imposes much less restriction than before and is therefore said to be more liberal. Step 4: In India, barriers on foreign trade and foreign investment were removed to a large extent from 1991 onwards. Step 5: Hence liberalisation is best described as the removal of restrictions on trade - Option (C).