Explain the foreign trade policy of india before 1991
Answers
A highly crucial aspect ofeconomic liberalisation is theliberalisation in the field offoreign trade. Two basic components of the import policyof the government of India before 1991 were import restriction and import- substitution. The stiff restrictions remained applicable upon imports until 1977-78.
Answer:
The Foreign Trade Policy (FTP) is the main policy that establishes clear, straightforward rules that are simple to follow and administer for the administration of India's overseas commerce.
Explanation:
India had a closed economy up to economic liberalization in 1991 because of high average tariffs (over 200%) and substantial quantitative import restrictions. Only Indian ownership of firms was permitted due to tight restrictions on foreign investment.
The importation of a variety of goods was permitted under the 1991 policy for export companies and trading houses. In order to encourage exports, the government also approved the establishment of trading houses with 51% foreign ownership. Super Star Trading Houses, a new class of trading houses, were established by the 1994–1995 program.
The Foreign Trade Policy (FTP) is the main policy that establishes clear, straightforward rules that are simple to follow and administer for the administration of India's overseas commerce. Aims of the Policy aimed at boosting the nation's trade in order to foster economic expansion and job creation.
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