Read the following statement given below and choose the correct alternative Statement 1 The reforms ...........

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Read the following statement given below and choose the correct alternative

Statement 1- The reforms of 1991, neglected the agricultural sector

Statement 2- Direct tax consist of taxes on income of individuals and and profits of businesses enterprises

Both are correct

Both are incorrect

Statement 1 is correct and statement 2 is incorrect

Statement 1 is incorrect and statement 2 is correct

Explanation:

- Statement 1: The 1991 economic reforms in India are often criticized for focusing heavily on liberalization, privatization, and globalization. They tended to overlook the agricultural sector compared to industry and services. This led to some neglect in terms of investments and policy support for agriculture. Hence, this statement is correct.

- Statement 2: Direct taxes include taxes on the income of individuals and businesses, as they are levied directly on the earnings. This includes income and corporate taxes. Hence, this statement is also correct.

- Option 1: Both statements are correct.

- Option 2: Both statements are incorrect, which is not true.

- Option 3: This option claims Statement 1 is correct and Statement 2 is incorrect, which is misleading.

- Option 4: This states Statement 1 is incorrect and Statement 2 is correct, only partly true.