Question : Statement 1: The 1991 economic policy in India aimed to liberalize the Indian economy.
Statement 2: Liberalization refers to the reduction of government restrictions on economic activities.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true. The 1991 economic policy, also known as the New Economic Policy or Economic Reforms, aimed to shift the Indian economy from a heavily regulated and controlled system to a more market-oriented and liberalized economy. It involved various reforms such as deregulation, privatization, and liberalization of trade and foreign investment.
Statement 2 is also true. Liberalization refers to the process of reducing government regulations and controls on economic activities, allowing greater freedom and participation of private individuals and businesses. It typically involves reducing barriers to trade, removing restrictions on foreign investment, deregulating industries, and promoting competition.
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Question : Statement 1: The 1991 economic policy aimed to address the balance of payments crisis in India.
Statement 2: The economic reforms of 1991 were initiated under the leadership of Rajiv Gandhi.
Question : Statement 1: The 1991 economic policy in India aimed to address high inflation and fiscal deficit.
Statement 2: The economic reforms of 1991 were initiated under the leadership of Indira Gandhi.
Question : Statement 1: Financial sector reforms aimed to improve access to financial services for all sections of society.
Statement 2: The 1991 economic policy led to the nationalization of banks in India.
Question : Statement 1: Liberalization of the financial sector in India aimed to promote competition among banks.
Statement 2: The Reserve Bank of India (RBI) was abolished as part of financial sector reforms.
Question : Statement 1: The Foreign Trade Policy of India during 1951-1991 focused on export promotion.
Statement 2: The policy aimed to increase India's share in global trade and earn foreign exchange.
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