In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- After independence, India was following a regime of quantitative and qualitative restriction on imports.

Reason (R)- Pursuant to economic reforms of 1991, industrial licensing was abolished for almost all industries except few like hazardous and environmentally sensitive industries.

(A) Is false but (R) is true.

The correct answer is Option 4: (A) Is false but (R) is true.

Assertion (A)- After independence, India was following a regime of quantitative and qualitative restriction on imports. This is incorrect. India followed a regime of quantitative restriction (not QUALITATIVE) on imports because it wanted to save the domestic industries from foreign competition. This was encouraged through tight control over imports and by keeping the tariffs very high.

Reason (R)- Pursuant to economic reforms of 1991, industrial licensing was abolished for almost all industries except few like hazardous and environmentally sensitive industries. This is correct.  The reform policies introduced in and after 1991 removed many of these restrictions. Industrial licensing was abolished for almost all but product categories — alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are now reserved for the public sector are a part of atomic energy generation and some core activities in railway transport.