Assertion: Indian government encouraged foreign trade and investment f...
Assertion: Indian government encouraged foreign trade and investment for development.
Reason: Rate of economic growth of India is low.
A: Both A and R are true and R is the correct explanation of A.
- The statement in the assertion is true - The Indian government has indeed encouraged foreign trade and investment for development.
- The statement in the reason is also true - The rate of economic growth in India has been relatively low.
- The reason given in the statement correctly explains why the Indian government has encouraged foreign trade and investment.
- Foreign trade and investment can help boost economic growth by attracting capital, technology, and creating employment opportunities.
- Therefore, option A is the correct answer as both the assertion and the reason are true, and the reason explains the assertion.
B: Both A and R are true but R is not the correct explanation of A.
- The statement in the assertion is true - The Indian government has indeed encouraged foreign trade and investment for development.
- The statement in the reason is also true - The rate of economic growth in India has been relatively low.
- However, the reason given in the statement is the correct explanation of why the Indian government has encouraged foreign trade and investment.
- Therefore, option B is incorrect as the reason is the correct explanation of the assertion.
C: A is correct but R is wrong.
- The statement in the assertion is true - The Indian government has indeed encouraged foreign trade and investment for development.
- However, the statement in the reason is also true - The rate of economic growth in India has been relatively low.
- Therefore, option C is incorrect as both the assertion and the reason are true.
D: A is wrong but R is correct.
- The statement in the assertion is true - The Indian government has indeed encouraged foreign trade and investment for development.
- The statement in the reason is also true - The rate of economic growth in India has been relatively low.
- Therefore, option D is incorrect as both the assertion and the reason are true.
Therefore, the correct answer is A: Both A and R are true and R is the correct explanation of A.
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Assertion: Indian government encouraged foreign trade and investment f...
Assertion: Indian Government's Encouragement of Foreign Trade and Investment
The Indian government has indeed played a pivotal role in promoting foreign trade and investment, especially post-liberalization in the early 1990s. This approach was aimed at stimulating economic growth and integrating India into the global economy.
Reason: Economic Growth Rate
The reason for this encouragement was primarily the low rate of economic growth that India experienced prior to these reforms. The economic policies before liberalization often resulted in stagnation and inefficiency, necessitating a shift towards a more open and market-oriented economy.
Analysis of the Assertion and Reason
- Both A and R are true and R is the correct explanation of A: This option suggests that the low economic growth rate directly led to the government's encouragement of foreign trade and investment. While both statements are true, the connection isn't solely causal; various factors influenced the decision.
- Both A and R are true but R is not the correct explanation of A: This option also holds merit as the government sought to boost growth through multiple strategies beyond just addressing low growth rates.
- A is correct but R is wrong: This option is inaccurate because while the assertion is correct, the reason about low growth is also valid.
- A is wrong but R is correct: This is incorrect as the assertion stands true.
Conclusion
The correct answer is option 'A' because both the assertion and reason are factual. However, the relationship between them is complex, with various factors contributing to the encouragement of foreign trade and investment beyond just the low economic growth rate. Thus, while both statements are true, the reasoning does not fully encapsulate the broader context of India's economic policies.