The trade policy of the 1950s-1980s in India emphasized:
Show answer & explanation
Correct answer: B
Explanation
Correct Answer: Import Substitution and Protectionism
Explanation:
During the 1950s–1980s, India’s trade policy mainly emphasized import substitution and protectionism.
Under this inward-looking strategy, the government imposed high tariffs and import quotas to protect domestic industries from foreign competition. The main objective was to achieve self-reliance by producing essential goods within the country and reducing dependence on imports.
Additional Points:
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India followed a restrictive and protectionist trade regime during this period.
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Domestic industries were protected from foreign competition through tariffs, quotas, and import controls.
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The policy aimed to promote domestic industrial development and self-reliance.
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The major economic crisis of 1991 led to sweeping economic reforms.
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In 1991, India introduced the LPG reforms — Liberalization, Privatization and Globalization, which significantly opened the economy to international trade and foreign investment.
Important Questions and Answers:
Question: In which year did India introduce major economic reforms and liberalization?
Answer: 1991.
Question: What is the primary goal of an import substitution policy?
Answer: To reduce dependence on foreign imports and promote domestic industrial growth.