Which of the following statement (s) is/are correct?

Statement 1: The economic reform policies implemented since 1991 have been able to reduce the inequalities existing in Indian society before reforms period only to a limited extent.

Statement 2: The economic reform policies have increased the income and quality of consumption of only high- income groups.

Only Statement 2 is correct.

In the Indian context, some studies have stated that the crisis that erupted in the early 1990s was basically an outcome of the deeprooted inequalities in Indian society and the economic reform policies initiated as a response to the crisis by the government, with externally advised policy package, further aggravated the inequalities. Further, it has increased the income and quality of consumption of only high-income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology, finance, entertainment, travel and hospitality services, real estate and trade, rather than vital sectors such as agriculture and industry which provide livelihoods to millions of people in the country.