Question : Statement 1: Industrial sector reforms focused on deregulation and delicensing of industries.
Statement 2: Deregulation refers to the removal of government control and restrictions on industries.
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.
Correct Answer: Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true. The industrial sector reforms introduced in the 1991 economic policy aimed to reduce government control and regulation on industries. It involved the delicensing of industries, which means removing the requirement for government approval to establish and operate businesses in certain sectors. This allowed for greater participation of private players and increased competition.
Statement 2 is also true. Deregulation refers to the process of reducing or eliminating government control, regulations, and restrictions on industries. It involves reducing bureaucratic barriers, easing licensing requirements, and promoting a more market-driven approach where businesses have more freedom to operate and make decisions.
