‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
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The reasons justifying the given statement are:
(i) In 1991 the government of India liberalised
its policy and felt that Indian producers must
compete with producers around the world.
(ii) 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.
(iii) Another reason was the economic crises in India
in 1990-91 and support of WTO and IMF which
led the government to remove trade barriers.
Hence, Indian government removed trade barriers to a
large extent on foreign trade and foreign investment
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