Assertion (A): Reduction in import duties on capital goods was indeed a key instrument of economic liberalization in India in 1991. This was part of opening up the economy and integrating with global markets. Reason (R): Reducing import duties on capital goods makes it cheaper for local businesses to import advanced machinery and technology. This access to better technology helps them improve efficiency, quality, and productivity, enabling them to compete more effectively both domestically and internationally.
Assertion (A): An important policy instrument of economic liberalization is reduction in import duties on capital goods. Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets. In the context of the above two statements, which one of the following is correct?
Asked in UPPCS Prelims 1996 · Topic: Nature of Indian Economy (Openness of Economy and Integration with Global Markets)
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Answer: A. Both A and R are true and R is the correct explanation of A
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