What was the primary aim of import substitution policy in India's early planning era?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Replace foreign imports with domestic production.
The primary aim of India's Import Substitution Industrialization (ISI) strategy was to achieve self-reliance by protecting "infant" domestic industries from foreign competition. By replacing foreign imports with local production, the government sought to reduce dependence on foreign exchange and technology. This "inward-looking" strategy utilized high tariffs and strict quotas to ensure that goods previously bought from abroad were manufactured within India, thereby fostering a diverse, independent industrial base during the early Five-Year Plans.