Question

What is trade barrier ? Why did the government put up trade barriers after independence exp 5 points

Answer 1

A trade barrier is any restriction put by the government to increase or decrease foreign trade.

The Indian government put up trade barriers after independence because of the following reasons:

To protect indian traders from foreign competition.

Industries were coming up at the stage, so indian industries were allowed to import only essential items

Answer 2

☘️ Answer:

The restrictions set by the Government to regulate foreign trade are called trade barriers. Tax on imports is an example of a trade barrier.

1. The Indian Government had put barriers to foreign trade and foreign investment after independence to protect the domestic producers from foreign competition.
2. So that, the Indian producers don't get demotivated after watching competition in market from foreign trades.
3. Imports at that stage would not have allowed local industries to come up.
4. India allowed imports of only essential items such as machinery, fertilizers, petroleum, etc.