Question : Statement 1: Trade reforms aimed to reduce import tariffs and promote exports.
Statement 2: Import substitution was the main objective of trade reforms in the 1991 economic policy.
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: Statement 1 is true, and statement 2 is false.
Solution : The correct answer is (c) Statement 1 is true, and statement 2 is false.
Statement 1 is true: Trade reforms in the 1991 economic policy aimed to reduce import tariffs and promote exports. The policy aimed to liberalize the trade sector, lower trade barriers, and make Indian products more competitive in the global market.
Statement 2 is false: Import substitution was not the main objective of trade reforms in the 1991 economic policy. Import substitution refers to the strategy of promoting domestic industries by substituting imports with domestically produced goods. However, the 1991 economic policy focused on trade liberalization and increasing exports rather than import substitution.
