Correct Option
Option (b):
Assertion (A) is true. India's Export-Import (EXIM) policies, particularly those implemented in the post-1991 era and continuing into the early 2000s, were characterized by a liberal, market-oriented approach. These policies aimed at integrating the Indian economy with global trade by reducing quantitative restrictions, lowering tariffs, promoting exports, and streamlining trade procedures, thereby fostering a more open and competitive trade regime.
Reason (R) is true. The General Agreement on Tariffs and Trade (GATT), established in 1947, played a crucial role in the liberalisation of the global economy. Through successive rounds of multilateral negotiations, GATT significantly reduced tariffs and non-tariff barriers, established principles of non-discrimination (Most Favoured Nation treatment), and provided a framework for international trade, thereby facilitating increased global trade flows and economic integration.
However, Reason (R) is not the correct explanation of Assertion (A). While GATT influenced the broader global trade environment, India's specific EXIM policy reforms and its shift towards a liberal, market-oriented approach were primarily driven by domestic economic imperatives, including the balance of payments crisis of 1991, the subsequent adoption of structural adjustment programs (often influenced by institutions like the IMF and World Bank), and a strategic decision to integrate more closely with the global economy. The EXIM policy was a direct outcome of India's internal economic reforms rather than a direct consequence or explanation of GATT's role in global liberalisation.
Incorrect Options
Option (a) is incorrect because, as explained, while both statements are individually true, India's EXIM policy reforms were primarily a result of domestic economic policy shifts and not directly explained by GATT's role in global trade liberalisation.
Option (c) is incorrect because Reason (R) is factually true. GATT was indeed instrumental in promoting global trade liberalisation through tariff reductions and establishing trade norms.
Option (d) is incorrect because Assertion (A) is factually true. India's EXIM policies in the early 2000s were indeed designed to be liberal, market-oriented, and conducive to global trade.