Assertion (A) >: There was an increase in industrial production during 1999-2000. Reason (R) >: The period witnessed a stable exchange rate and improved business sentiments.

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Q: 29 (IAS/2001)

Assertion (A): There was an increase in industrial production during 1999-2000.
Reason (R): The period witnessed a stable exchange rate and improved business sentiments.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,91,25,91,13,12,0

keywords: 

{'industrial production': [0, 0, 1, 0], 'stable exchange rate': [0, 0, 1, 0], 'business sentiments': [0, 0, 1, 0], 'increase': [3, 1, 10, 35]}

The correct answer is:

Both A and R are individually true, and R is the correct explanation of A.

Explanation:

The assertion (A) states that there was an increase in industrial production during 1999-2000. This is true. The period of 1999-2000 witnessed an upswing in industrial production in several sectors. It was a phase of economic growth and development in various industries.

The reason (R) states that the period witnessed a stable exchange rate and improved business sentiments. This is the correct explanation of why there was an increase in industrial production. A stable exchange rate and improved business sentiments create a favorable environment for industrial growth. A stable exchange rate facilitates smoother trade and transactions, while improved business sentiments encourage investment, expansion, and production.

Therefore, both statements A and R are individually true, and R is the correct explanation of why there was an increase in industrial production during 1999-2000.