Assertion (A) : The new EXIM Policy is liberal, market oriented and favours global trade. Reason (R) : GATT has played a significant role in the liberalisation of economy.

The Assertion is true: India’s new EXIM/Foreign Trade Policy is framed to integrate India more with world trade, facilitate necessary imports to stimulate the economy and to expand India’s share in global merchandise trade — objectives explicitly stated in the policy context [1]. The Reason is also true: GATT (and its successor WTO) was established to liberalise trade through tariff reductions and removal of non‑tariff barriers, promoting freer global trade [3]. However R is not the correct explanation of A: while GATT/WTO created a global framework encouraging liberalisation, India’s EXIM policy reflects domestic policy choices and post‑reform national objectives to boost exports, employment and economic growth rather than being directly caused by GATT per se.

Sources

1. [1] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > Foreign Trade Policy > p. 53
2. [2] FUNDAMENTALS OF HUMAN GEOGRAPHY, CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > World Trade Or rade Organisation > p. 74
3. [3] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > General Agreement on Tariff and Trade (GATT) > p. 51