From the following statements of Assertion (A) and Reasoning (R), indicate the correct code:
Assertion (A): Industrial liberalisation became an imperative condition for the growth of forces of competition leading to high efficiency and productivity in Indian industries.
Reasoning (R): Industrial development and curbing of poverty is only possible through government intervention.
Code:

Correct option is B

The correct answer is (b) (A) is correct but (R) is not the correct explanation of (A).
The Assertion is valid because the 1991 reforms proved that removing licensing and "Red Tape" allowed Indian industries to compete globally, driving efficiency. However, the Reasoning is flawed in this context. While government intervention helps social welfare, the modern economic consensus (and the logic of liberalization) suggests that private enterprise, not just state control, is the primary engine for industrial growth and poverty reduction through job creation.
Information Booster
· LPG Policy: Stands for Liberalization, Privatization, and Globalization.
· Efficiency: Competition forces firms to innovate and reduce waste to survive.
· Deregulation: Liberalization involved the abolition of industrial licensing for most sectors.
· Market Forces: Shifting from a "command economy" to a "market economy" improved resource allocation.