Assertion: Import substitution policy of India was aimed at replacing or substituting imports with domestic production.

Reasoning: The Indian government wanted to reduce dependence on foreign goods and promote self-sufficiency.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Import substitution policy refers to the strategy of replacing imported goods with domestically produced goods. It aimed to develop domestic industries and reduce dependence on foreign imports. he government's objective behind import substitution policy was indeed to reduce the reliance on foreign goods and promote self-sufficiency. By producing goods domestically, the government aimed to protect domestic industries, create employment opportunities, and boost the overall economy.

Thus, Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.