Question

Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below: 
Assertion (A): The excessive regulation of permit license raj prevented certain private firms from becoming fairly competitive. 
Reason (R): Private sector wasted huge amounts in obtaining licenses rather than on improving the product quality and international competitiveness. 
 

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is {not} the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Understand the drawbacks of regulatory systems like the permit license raj to answer similar questions.

Answer 1

The Correct Option is A

Assertion (A): The era of stringent licensing regulations impeded the expansion of private enterprises and stifled their competitive edge.
Reason (R): Significant resources were allocated to the acquisition of permits, diverting focus from advancements in innovation and enhancements to product quality. 
Conclusion: Both statements are accurate, and Reason (R) provides a valid explanation for Assertion (A).