Question

prior to 1991, India followed mixed economy approach to economic development. What was the logic behind this approach?​

Answer 1

Explanation:

• After Independence, Government of India put barriers on Foreign trade & Foreign investment.
• This was done to protect local producers from Foreign Competition, as they were just coming up in 1950's & 1960's.
• At that point, India imported only essential items like machinery, fertilizers, petroleum, etc. Their performance & quality of goods. So, Government of India made some major changes in its Foreign trade policy in 1991.
• This decision was supported by powerful International Organizations like the World Trade Center (WTO).

Answer 2

Answer:

Before 1991, India followed mixed economy approach to economic development. The logic behind this approach was that the industries were critically important for the economy and should be retained by the government.