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.

The assertion states that trade reforms in the 1991 economic policy aimed to reduce import restrictions, which is true. The aim of these reforms was to liberalize trade and reduce barriers to imports, such as tariffs and quotas, in order to promote economic growth, increase competition, and provide consumers with a wider variety of choices.

The reason provided is also true. Lower import restrictions indeed promote competition and offer consumers a wider variety of choices. When import restrictions are reduced, it allows for a greater influx of imported goods, which creates more competition in the domestic market. This increased competition can lead to improved product quality, lower prices, and a greater range of options for consumers.

Therefore, both the assertion and reason are true, and the reason correctly explains the assertion.