Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce trade barriers.
Reason: Lower trade barriers can enhance market access and promote international trade.
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.
The assertion that trade reforms in the 1991 economic policy aimed to reduce trade barriers is true. The economic reforms implemented in 1991 in India included measures to liberalize and open up the economy, which involved reducing trade barriers such as tariffs, import restrictions, and licensing requirements. The aim was to promote international trade and increase market access for Indian goods and services.
The reason provided, which states that lower trade barriers can enhance market access and promote international trade, is the correct explanation for the assertion. By reducing trade barriers, countries can expand their market access, attract foreign investments, and stimulate exports. Lower trade barriers encourage competition, improve efficiency, and allow for the flow of goods and services across borders, leading to increased international trade and economic growth.
Therefore, both the assertion and the reason are true, and the reason is the correct explanation of the assertion.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import tariffs.
Reason: Lower import tariffs can stimulate domestic industries and enhance competitiveness.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import restrictions.
Reason: Lower import restrictions can promote competition and offer consumers a wider variety of choices.
Question : Assertion: External sector reforms aimed to liberalize foreign trade and investment policies.
Reason: Liberalized policies attract foreign capital and enhance competitiveness.
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 promote financial inclusion in India.
Reason: Access to financial services is essential for inclusive economic growth.
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