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Question : Statement 1: The Special Economic Zones (SEZs) were established to promote export-oriented industries in India.

Statement 2: SEZs provided tax incentives and simplified regulatory processes for businesses.

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.


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Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Both statements are true.
 


Solution : The correct answer is (a) Both statements are true.

Statement 1 is true. The New Economic Policy of 1991, also known as economic liberalization or economic reforms, was introduced to dismantle the License Raj system and liberalize India's industrial policies. It aimed to reduce government intervention, promote market-oriented reforms, and encourage private sector participation.

Statement 2 is also true. The New Economic Policy of 1991 indeed encouraged foreign investment and globalization. It opened up several sectors to foreign investment, relaxed restrictions on imports and exports, and promoted trade and economic integration with the global market.

Therefore, both statements are true. The New Economic Policy of 1991 aimed at liberalizing India's industrial policies, and it also encouraged foreign investment and globalization.

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