Question

Assertion(A): LPG policy was introduced in 1991.

Reason(R): LPG stands for liberalisation, privatisation, and globalisation.

Alternatives:

Options

• Both Assertion(A) and Reason(R) are true, and Reason(R) is the correct explanation of Assertion(A).

• Both Assertion(A) and Reason(R) are true, and Reason(R) is not the correct explanation of Assertion(A).

• Assertion(A) is true, but Reason(R) is false.

• Assertion(A) is false, but Reason(R) is true.

Answer 1

Both Assertion(A) and Reason(R) are true, and Reason(R) is the correct explanation of Assertion(A).

Explanation:

The New Economic Policy, based on LPG Liberalisation, Privatisation, and Globalisation, was introduced by India in July 1991 to tackle a foreign exchange crisis and open the economy. These reforms removed controls, reduced the state’s role, and encouraged foreign investment and trade; hence, R explains A.