Question

After independence the Indian government put barriers to foreign trade and foreign investment to protect the

Indian producers from foreign competition. Why did it decide to remove these barriers around 1991? List any two

benefits of this change in policy for Indian customers.​

Answer 1

Answer:

In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries. It felt that foreign competition would in fact improve the quality of goods produced by Indian industries

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