How did India’s trade policy reforms post-1991 impact the import of capital goods?

Correct option is B

The correct answer is: (b) Reduced tariffs and removed licensing
Explanation:
· The 1991 LPG reforms liberalized India’s economy.
· For capital goods, the government reduced import tariffs and abolished licensing requirements, making advanced technology more accessible to Indian industries.
· This helped modernization and boosted industrial growth.
Information Booster:
· 1991 reforms launched by P. V. Narasimha Rao govt. with Dr. Manmohan Singh as Finance Minister.
· Ended “License Raj” system.
· Attracted FDI and foreign technology.
· Boosted competitiveness of Indian industries.
· Paved the way for India’s integration with the global economy.