During the period of 1947-1990, India's trade policy was largely characterized by:
Show answer & explanation
Correct answer: A
Explanation
Answer: An inward-looking strategy emphasizing import substitution and protection of domestic industries
Explanation: During 1947–1990, the economic policy of India was based on a planned, controlled economy.
Key characteristics of trade policy:
Focus on import substitution industrialization (ISI)
Heavy protection of domestic industries
High tariffs and strict import licensing
Limited foreign trade and investment
This approach aimed to:
Reduce dependence on imports
Build self-reliant industries
Protect infant industries from global competition
Additional Key Facts
Policy era known as the “License Raj” system
Major reforms began in 1991 economic liberalization
Post-1991 shift led to: Globalization, Privatization and Deregulation
Potential Exam Questions and Answers
Q. What was the “License Raj”?
Ans: System of strict industrial licensing and controls
Q. What is import substitution?
Ans: Producing goods domestically instead of importing them