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.

1. This is an Assertion-Reason question about India's trade policy and the role of GATT. 2. Assertion (A): The new EXIM Policy (Export-Import Policy, relevant around 2002-03) is liberal, market oriented and favours global trade. This is true. India's trade policies during this period were progressively becoming more liberal and market-oriented, moving away from protectionism towards integration with the global economy, aligning with WTO principles. 3. Reason (R): GATT (General Agreement on Tariffs and Trade) has played a significant role in the liberalisation of economy. This is also true. GATT, and its successor the WTO, provided the multilateral framework that encouraged global trade liberalisation, reduction of tariffs, and non-tariff barriers, influencing India's own economic reforms and trade policies. 4. Evaluating the relationship: Both A and R are true. Does R explain A? The liberalisation promoted by GATT/WTO influenced India's adoption of more liberal and market-oriented EXIM policies. However, R states a general historical role of GATT, while A describes the specific nature of India's contemporary policy. While related, R is a broader background factor rather than a direct, specific explanation for *why* the *new* policy has the specific characteristics mentioned in A. Other domestic factors also drove the policy changes. Therefore, R is not the *correct* explanation for A, although it provides relevant context. 5. The correct option is (B) Both A and R are individually true but R is NOT the correct explanation of A.