Liberalisation removed barriers to foreign trade and foreign investment, allowing goods and services to move freely across borders. It allowed MNCs to invest in India and Indian companies to invest abroad. This increased the flow of goods, services, and capital between countries, thereby promoting globalisation.
Source: Chapter 4, Summing Up
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The examiner wants two clear points: (1) what liberalisation did (removed trade/investment barriers) and (2) how that directly promoted globalisation (increased cross-border flow of goods, services, investment, and MNC activity). Avoid writing a long essay — two crisp sentences linking the cause (removal of barriers) to the effect (greater integration/globalisation) are sufficient for 2 marks.