Q.Explain the structural changes in agriculture and industry during the economic reforms period.

Partial convertibility of the rupee, reduction of tariffs, and higher FDI equity limits were ALL part of India's globalisation strategy.

India's post-1991 globalisation strategy involved several interlinked reforms, all of which the question's options correctly describe: (i) partial (and later fuller) convertibility of the rupee on the current account, making it easier to exchange rupees for foreign currency for trade purposes; (ii) a steady reduction of import tariffs and customs duties to integrate Indian industry with world markets and expose it to foreign competition; and (iii) raising the permissible limit of equi …

Quantitative restrictions fix a physical quota/ceiling on how much of a good may be imported, as opposed to tariffs, which restrict imports through price/duty.

Quantitative restrictions on imports refer to government-imposed limits that cap the actual physical QUANTITY (or value) of a particular good that can be legally imported into the country during a given period, often administered through import licences or quotas. They are a non-tariff trade barrier -- unlike tariffs (import duties/taxes), which restrict imports indirectly by raising their price, quantitative restrictions directly cap the volume of imports allowed, regardless of price. Prior to the 1991 reforms, India relied heavi …

One major long-term structural reform under the New Economic Policy (1991) was industrial delicensing -- scrapping licence requirements for most industries.

With the introduction of the New Economic Policy in 1991, the Government of India undertook several long-term structural reforms. One of the most significant was industrial policy reform through delicensing -- the government abolished the requirement to obtain an industrial licence before setting up, expanding or diversifying most industries (barring a small list reserved for strategic/security or environmental reasons). This freed private firms from the earlier 'Licence Raj' and allowed market forces to guide investment decisions. (Other equall …

The Assertion is true — direct taxes such as income tax and corporate tax are levied on the income and profits of individuals and companies. The Reason is also true — the burden of a direct tax cannot be shifted to anyone else. But the Reason describes a different characteristic (non-shiftability of incidence) and does not explain what the tax is levied on, so it is not the correct explanation of the Assertion. The answer is (B).

A tax whose burden falls on the payer himself is a direct tax.

A direct tax is one whose impact (liability to pay) and incidence (final burden) are on the same person — it cannot be shifted to others. Income tax, corporate tax and wealth tax are examples. In contrast, an indirect tax (e.g., GST, excise) can be shifted to the fina …

Direct taxes are levied on and paid by the same person — income tax and corporate tax are the two most common examples.

Taxes are classified as direct or indirect depending on whether the burden (incidence) of the tax can be shifted to someone else. A direct tax is imposed on a person's income or wealth, and that same person bears its final burden — it cannot legally be passed on to another party. Income tax, charged on the income earned by individuals, is the most familiar example; corporate tax, charged on the profits earned by companies, works the same way. Other examples include wealth tax and estate duty. These contrast with indirect taxes (like GST), which are levied on goods and …

Direct taxes include income tax, corporate tax and wealth tax.

A direct tax is one whose impact and incidence fall on the same person — it cannot be shifted to others. The main direct taxes are:

• Income tax (on individuals' incomes),
• Corporation/corporate tax (on company profits),
• Wealth tax / capital gains tax (on wealth and gains). …

Income tax is a direct tax.

A direct tax is one whose impact and incidence are on the same person — it cannot be shifted to others. Income tax is levied on and paid directly by the income earner, so it is a direct tax (unlike indirect taxes such as GST, whose bu …