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.
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.
External sector reforms in many countries, including India, aim to attract foreign direct investment (FDI) by creating a favorable business environment and removing barriers to investment. The reason provided is also true because FDI can contribute to economic development by bringing in capital, technology, managerial expertise, and access to new markets. It can stimulate job creation, increase productivity, foster innovation, and enhance competitiveness in the domestic market. Therefore, the reason correctly explains the assertion.
Question : Assertion: External sector reforms aimed to liberalize foreign trade and investment policies.
Reason: Liberalized policies attract foreign capital and enhance competitiveness.
Question : Assertion: Industrial sector reforms aimed to encourage private sector participation.
Reason: Private sector participation can bring in investment and technological advancements.
Question : Assertion: Industrial sector reforms aimed to enhance productivity and competitiveness.
Reason: Increased productivity and competitiveness contribute to overall economic growth.
Question : Assertion: Liberalization reforms aimed to promote competition in the industrial sector.
Reason: Increased competition encourages innovation and efficiency.
Question : Assertion: Financial sector reforms aimed to strengthen the regulatory framework.
Reason: A robust regulatory framework ensures stability and protects investors' interests.
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