Question : Assertion: External sector reforms aimed to liberalize foreign trade and investment policies.
Reason: Liberalized policies attract foreign capital and enhance competitiveness.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion states that external sector reforms aimed to liberalize foreign trade and investment policies, which is true. These reforms were implemented to reduce trade barriers, promote exports, attract foreign investments, and integrate the Indian economy with the global market.
The reason provided is also true. Liberalized policies do attract foreign capital and enhance competitiveness. When trade and investment policies are liberalized, it creates a more favorable environment for foreign investors, encourages cross-border trade, and promotes economic growth.
Therefore, both the assertion and reason are true, and the reason correctly explains the assertion.
Question : Assertion: Industrial sector reforms aimed to enhance productivity and competitiveness.
Reason: Increased productivity and competitiveness contribute to overall economic growth.
Question : Assertion: External sector reforms aimed to attract foreign direct investment (FDI).
Reason: FDI can contribute to economic development by bringing in capital and technology.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import tariffs.
Reason: Lower import tariffs can stimulate domestic industries and enhance competitiveness.
Question : Assertion: Liberalization reforms aimed to promote competition in the industrial sector.
Reason: Increased competition encourages innovation and efficiency.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce trade barriers.
Reason: Lower trade barriers can enhance market access and promote international trade.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile