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Assertion (A): Liberalisation reduced quantitative restrictions on imports. Reason (R): The aim was to integrate India with the global economy.

1. Both A and R are true and R is the correct explanation of A.
2. Both A and R are true but R is not the correct explanation of A.
3. A is true but R is false.
4. A is false but R is true.

Correct answer: Both A and R are true and R is the correct explanation of A.

Solution

Liberalisation did reduce quantitative restrictions on imports. The reason is also true because one of the main aims of liberalisation was to integrate India with the global economy, which explains the policy change.

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