UPSC Prelims 2003 · General Studies

Question 104: Economy and Social Development

Assertion (A): The new EXIM Policy is liberal, market-oriented and favours global trade. Reason (R): GATT has played a significant role in the liberalisation of economy.

aBoth A and R are individually true and R is the correct explanation of A

bBoth A and R are individually true but R is NOT the correct explanation of A

cA is true but R is false

dA is false but R is true

AnswerThe answer is (c).

The key treats A as true and R as false. The EXIM Policy of 2002-07 was liberal and market-oriented, as A says. R is treated as false, probably because India's EXIM liberalisation is credited to its own reforms from 1991 and to its WTO commitments after 1995, and GATT itself was replaced by the WTO in 1995.

A. The new EXIM Policy was liberal and favoured trade.
R. The key treats this as false; liberalisation is credited to India's own reforms and to the WTO, which replaced GATT.

How you could have got this

If you were sure statement 1 is correct, (d) goes. Then judge the second statement; if it is correct too, decide whether it explains the first.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong

(a) R is treated as false, so it cannot explain A.
(b) R is treated as false in the key, so 'both true' fails.
(c) Correct: A is true and R is false.
(d) A is true, so 'A false' fails.

Worth knowing: R is arguably true, since GATT rounds pushed trade liberalisation, so (b) is open to argument; the key treats R as false.

Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedPrevious question Next question

Source: UPSC, Civil Services (Preliminary) Examination 2003, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.