Question : Statement 1: The New Economic Policy of 1991 aimed at liberalizing India's industrial policies.
Statement 2: The New Economic Policy encouraged foreign investment and globalization.
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 New Economic Policy of 1991, also known as economic liberalization or economic reforms, was introduced to dismantle the License Raj system and liberalize India's industrial policies. It aimed to reduce government intervention, promote market-oriented reforms, and encourage private sector participation.
Statement 2 is also true. The New Economic Policy of 1991 indeed encouraged foreign investment and globalization. It opened up several sectors to foreign investment, relaxed restrictions on imports and exports, and promoted trade and economic integration with the global market.
Therefore, both statements are true. The New Economic Policy of 1991 aimed at liberalizing India's industrial policies, and it also encouraged foreign investment and globalization.
