Question

Assertion (A): Post liberalization, the sale of domestic goods has increased.

Reasoning (R): The demand for imported goods had increased due to liberal policy.

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 but (R) is not the correct explanation of (A).

Explanation:

• Assertion (A) is true because after liberalization, Indian companies improved, leading to better sales of domestic goods.
• Reason (R) is also true since the liberal policy allowed more imports, increasing demand for foreign goods.
• But (R) doesn't explain (A), because more imported goods usually reduce, not increase, the sale of local products.