Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Which reform aimed to facilitate the establishment of a common national market for goods and commodities in India?

Options:

Tax reforms

Financial sector reforms

Foreign exchange reforms

Trade and investment policy reforms

Correct Answer:

Tax reforms

Explanation:

The tax reforms in India aimed to simplify and reform the indirect taxes levied on commodities. The introduction of the Goods and Services Tax (GST) Act in 2016 aimed to establish a unified indirect tax system and create a common national market for goods and commodities. This reform was expected to generate additional revenue, reduce tax evasion, and promote a more efficient tax system.