How was the liberalisation policy gradually adopted in india 0?
Answers
Answered by
12
After Independence, the Indian government had put barriers on foreign trade and foreign investment.
Initially, Indian industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
In 1999, the government decided that the time had come for Indian producers to compete with the producers around the globe.
It was felt that competition would improve the performance of domestic producers since they would improve their quality.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
Now, goods could be imported and exported easily and foreign companies could also set up
factories and offices here.
Initially, Indian industries were just coming up after Independence, so competition from imports wouldn’t have allowed these industries to come up.
In 1999, the government decided that the time had come for Indian producers to compete with the producers around the globe.
It was felt that competition would improve the performance of domestic producers since they would improve their quality.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
Now, goods could be imported and exported easily and foreign companies could also set up
factories and offices here.
Answered by
17
Answer:
- Indian government used trade barriers to protect local industries after independence.
- In 1991 ,the government of India adopted liberalization and removed trade barriers.
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