Question

explain the significtion of import substitution in india

Answer 1

Answer:

During the first seven plans, trade policy was characterized by inward-looking trade strategy, this strategy is known as “Import Substitution” This policy aimed at substituting imports with domestic production. In this policy, the government protected the domestic industries from foreign competition

Answer 2

Answer:

Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages for the production in the domestic market. The purpose of this policy is to change the economic structure of the country by replacing foreign goods with domestic goods. Post-Independence India adopted the policy of import substitution by imposing heavy tariffs on import duty. The industrial policy that the country endorsed was linked to the trade policy. In the first seven five year plans, trade in India was distinguished by the inward-looking trade strategy. This strategy is known as import substitution with the aim to boost domestic production and shield domestic products from international competition