Consider the following statements regarding the reforms in Trade Policy after liberalisation in Indian economy:
1. Dismantling quantitative restrictions on imports and exports.
2. Reduction of tariff rates.
3. Removal of licensing procedures for imports.

Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question

Consider the following statements regarding the reforms in Trade Policy after liberalisation in Indian economy:
1. Dismantling quantitative restrictions on imports and exports.
2. Reduction of tariff rates.
3. Removal of licensing procedures for imports.

Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : India progressively removed quantitative restrictions on imports and exports. By April 2002, all remaining quantitative restrictions were eliminated, except for a few items regulated for environmental, health, or safety reasons

Statement 2 is correct : Tariff rates were significantly reduced during the liberalization process. For example, the simple average of tariffs was lowered from 128% in 1991 to 34% by 1997.

Statement 3 is correct : Import licensing requirements were largely abolished, except for a few consumer goods initially. By the early 2000s, most goods could be imported freely without licensing restrictions.

Trade Policy Reforms in Indian Economy

Post-liberalisation Reforms

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M Question 1	⏱ 0
Consider the following statements regarding the reforms in Trade Policy after liberalisation in Indian economy: 1. Dismantling quantitative restrictions on imports and exports. 2. Reduction of tariff rates. 3. Removal of licensing procedures for imports. Which of the statements given above are correct ? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3