Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).

Assertion (A) : An important policy instrument of economic liberalization is reduction in import duties on capital goods.

Reason (R) : Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.

In the context of the above two statements, which one of the following is correct?

I.A.S. (Pre) 1996