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UPSC 1996: 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?
(a)Both A and R are true and R is the correct explanation of A
(b)Both A and R are true and R is not a correct explanation of A
(c)A is true but R is false
(d)A is false but R is true
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Not attemptedCorrect Answer: (a) Both A and R are true and R is the correct explanation of A
Lowering import duties on capital goods was a principal tool of India’s 1991 liberalisation, aimed at quickly improving firms’ access to advanced machinery. This technology upgrade helps domestic entrepreneurs compete internationally, so both the assertion and the reason are true and the reason correctly explains the assertion—option (a). ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1996-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1996 Indian Economy question?▼
The correct answer is option (a): Both A and R are true and R is the correct explanation of A. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this International Trade & WTO question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1996, GS Paper 1, as Question 31. It falls under Indian Economy > International Trade & WTO.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from International Trade & WTO?▼
UPSC has asked 38 questions from International Trade & WTO (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.