CA Foundation · Business Economics · Indian Economy
Which of the following was a trade policy reform introduced in India as part of the 1991 reforms?
The 1991 trade reforms substantially reduced import tariffs and removed most quantitative restrictions on imports. This replaced the earlier inward-looking, protectionist regime and aimed to make Indian industry more competitive and integrate India with global markets.
- AImposition of quantitative restrictions on all imports
- BSubstantial reduction of import tariffs and removal of most quantitative restrictions on importsCorrect
- CNationalisation of all export houses
- DFixing the exchange rate permanently by the government
Explanation
Post-1991 trade reforms lowered import duties sharply and abolished quantitative restrictions on most imports, especially of capital goods and intermediates. Option A describes the pre-reform regime. The exchange rate also moved toward market determination, so option D is incorrect.
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