In the context of India's trade policies between 1947 and 1990, what was a common characteristic of the approach towards imports?
Show answer & explanation
Correct answer: C
Explanation
Answer: Following a strategy of import substitution to protect domestic industries.
Explanation: Between 1947 and 1990, India followed a protectionist trade policy under the “License Raj” system. The main focus was on import substitution, meaning the country tried to reduce dependence on foreign goods by promoting domestic industries. Imports were heavily regulated and restricted to protect local manufacturing and conserve foreign exchange.
Additional Key Points:
This policy is part of the pre-liberalization economic model of India.
It aimed at self-reliance and industrial growth within the country.
Imports of consumer goods were highly restricted.
Essential imports like machinery and technology were still allowed under strict licensing.
This approach changed after the 1991 economic liberalization reforms.
1991 Economic Reforms of India marked a shift towards globalization and trade openness.
Potential Exam-Oriented Questions & Answers:
Question: What system controlled imports before 1991 in India?
Answer: License Raj
Question: Which year marked India’s shift towards liberal import policy?
Answer: 1991
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