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.
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, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
While it is true that trade reforms in the 1991 economic policy aimed to reduce import tariffs, the reason provided, which states that lower import tariffs can stimulate domestic industries and enhance competitiveness, is not the correct explanation of the assertion. The main objective of reducing import tariffs was to liberalize trade, promote exports, and open up the Indian economy to international markets. Lower import tariffs can help in increasing access to foreign goods and promoting international trade, but the direct impact on stimulating domestic industries and enhancing competitiveness is not explicitly explained by the reduction in import tariffs alone. There are various factors that contribute to the competitiveness of domestic industries, such as innovation, productivity, infrastructure, and government policies beyond import tariffs.
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 liberalize foreign trade and investment policies.
Reason: Liberalized policies attract foreign capital and enhance competitiveness.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import restrictions.
Reason: Lower import restrictions can promote competition and offer consumers a wider variety of choices.
Question : Assertion: The foreign trade policy during 1951-1991 aimed to protect domestic industries from foreign competition.
Reason: The policy-imposed import restrictions and high tariffs on certain goods.
Option 1: Both the assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
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.
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