Question : The 1991 economic policy aimed to promote entrepreneurship and innovation through:
Option 1: Licensing and regulations
Option 2: Subsidies and tax incentives
Option 3: Import restrictions
Option 4: Monopoly control
Correct Answer: Subsidies and tax incentives
Solution : The correct answer is (b) Subsidies and tax incentives
The policy introduced several reforms to streamline and simplify the taxation system, reduce tax rates, and offer tax incentives to businesses, especially in sectors considered crucial for economic growth. These incentives included exemptions, deductions, and subsidies to encourage investment, research and development, and technological innovation.
By providing subsidies and tax incentives, the 1991 economic policy aimed to create a conducive environment for entrepreneurship and innovation, enabling businesses to thrive, expand, and contribute to the overall economic development of the country.
