Question

Assertion (A): Delicensing of industries was an important step taken under liberalization.

Reasoning (R): Unwanted controls and restrictions led to economic stagnation prior to 1991.  

Options

• (A) is TRUE but (R) is FALSE

• (A) is FALSE but (R) is TRUE

•  (A) and (R) both are TRUE and (R) is the correct explanation of (A)

•  (A) and (R) both are TRUE but (R) is not the correct explanation of (A)

Answer 1

(A) and (R) both are TRUE and (R) is the correct explanation of (A). 

Explanation:

1. Assertion (A): Delicensing sectors was a significant step towards liberalization. This gave industries more leeway to operate without requiring licenses in many sectors, encouraging expansion and competition. 
2. Reason (R): Before 1991, heavy regulations and limitations (also known as the "License Raj") slowed economic progress, resulting in stagnation.