Question : Statement 1: Trade reforms in the 1991 economic policy aimed to reduce import tariffs.Statement 2: The introduction of export subsidies was a key feature of trade reforms.

Statement 2: The introduction of export subsidies was a key feature of trade reforms.

 

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.


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Answer (1)
Team Careers360 2nd Jan, 2024

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. As part of the liberalization measures, the 1991 economic policy aimed to reduce import tariffs to promote trade, attract foreign investment, and make imports more affordable for domestic consumers.

Statement 2 is false. The trade reforms introduced in the 1991 economic policy focused on reducing trade barriers and promoting export-oriented growth. The emphasis was on enhancing competitiveness and efficiency in the export sector rather than providing export subsidies. The reforms aimed to make Indian exports more competitive in the global market through various measures such as exchange rate adjustments and export promotion policies.

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