Question : Statement 1: Trade reforms in the 1991 economic policy aimed to reduce trade barriers.
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.
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 in India aimed to reduce trade barriers. These reforms were introduced to liberalize the Indian economy and promote international trade by reducing tariffs, import licensing requirements, and other trade restrictions.
Statement 2 is false: The introduction of export subsidies was not a key feature of trade reforms in the 1991 economic policy. In fact, one of the main objectives of the trade reforms was to move away from export subsidies and focus on creating a more competitive and open trade environment.
