Question

"barriers on foreign trade and foreign investment were removed to a large extent in india since.1991" justify the statement

Answer 1

In 1991, the Government of India liberalised its policy and felt that Indian producers must compete with producers around the world.
The Government had an opinion that trade competition would improve the performance of the local producers within the country since they will be forced to improve their quality.
Thus, Indian Government removed barriers to a large extent on foreign trade and foreign investment.

Answer 2

1. The government decided to remove the barriers on foreign trade and foreign investment around 1991 as it was realized that the time had come for Indian producers to compete with producers around the globe.

2. The removal of barriers meant that goods could be imported as well as exported easily and also foreign companies could set up their factories and offices in India. In addition, the government imposed much fewer restrictions of business activity within India who was allowed to take decisions freely.

3. It was also felt that competition would improve the performance of the producers within India as they would have to improve their quality of service in comparison to the foreign competition.