Question

Which of the following does not relate to the External Sector Reforms in 1991?

• A. Reduction in the number of items covered by import licenses
• B. Permission for free trade of all items except a negative list of imports and exports
• C. Increasing of import/ export duty rates
• D. Permission for foreign direct investment

Answer 1

The correct option is C Increasing of import/ export duty rates

Increasing of import/ export duty rates does not relate to the External Sector Reforms in 1991. As per New economic policy which was adopted in 1991, the import rates and export duty rates were to be decreased so that there would be fair flow of goods between the domestic country and other countries as a result of which there will be rationalization in the tariff structure,