Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R). Assertion (A): The New Economic Policy of 1991 resulted in the abolition of industrial licensing for most industries. Reason (R): Licensing was re-imposed to regulate growing private sector monopolies.
A is true but R is false.
Assertion (true): The New Industrial Policy of 24 July 1991 abolished compulsory industrial licensing for most industries, retaining it only for a small list (originally 18, since reduced to a handful) involving security, strategic concerns, environmental issues or hazardous chemicals.
Reason (false): Licensing was not later re-imposed to regulate private monopolies. On the contrary, the trend through the 1990s and 2000s was further deregulation. Concerns about monopolies were addressed through competition law — the MRTP Act gave way to the Competition Act of 2002 — not through restoring the licence raj.
Hence A is true but R is false — option (3).
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