Question : Assertion: Liberalization reforms aimed to promote competition in the industrial sector.
Reason: Increased competition encourages innovation and efficiency.
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.
Liberalization reforms indeed aimed to promote competition in the industrial sector. By reducing government regulations and barriers, liberalization creates a more open and competitive environment for businesses. This allows new players to enter the market, encourages innovation, and pushes existing companies to improve their efficiency and quality. Increased competition often leads to better products and services, lower prices, and overall economic growth. Therefore, the reason provided accurately explains how promoting competition is a goal of liberalization reforms in the industrial sector.
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