what was the reasons for putting barriers to foreign trade and foreign investment by the Indian government?why did it wish to remove these barriers?
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Answered by
76
reasons for putting barriers to foreign trade and investment by the indian government are:-
1.after independence india should compete with the world to survive
2.till then the indian products were not good in quality and were not able to compete with foreign goods
3.so government put barriers.
4.after some years producers in our country were trained and goods were improved and new industries were developed
5.so government thought that now the producers are ready to compete wuth foreign goods
6.so barriers were removed and now goods were easily exported and imported
1.after independence india should compete with the world to survive
2.till then the indian products were not good in quality and were not able to compete with foreign goods
3.so government put barriers.
4.after some years producers in our country were trained and goods were improved and new industries were developed
5.so government thought that now the producers are ready to compete wuth foreign goods
6.so barriers were removed and now goods were easily exported and imported
Answered by
15
Reasons
Indian Economy was not in good position at the time of independence. Therefore Govt decided to give a boost to the economy, for this they put barriers on Foreign direct investment and high import duty on Foreign goods so that Indian industry could grow.
Indian Govt thought if they allow the Foreign companies in India then Indian industry would not grow. Because foreign companies has better technology and more capital.
But in 1991 the Indian economy was at its worst situation. There was shortage of Foreign exchange arised and they even had enough Foreign Currency to purchase necessary goods.
Then Govt apporoched to world bank for loan but they asked to mortgage the GOLD reserv and suggested them to come with economic reforms.
hope it helps
#jerri
Indian Economy was not in good position at the time of independence. Therefore Govt decided to give a boost to the economy, for this they put barriers on Foreign direct investment and high import duty on Foreign goods so that Indian industry could grow.
Indian Govt thought if they allow the Foreign companies in India then Indian industry would not grow. Because foreign companies has better technology and more capital.
But in 1991 the Indian economy was at its worst situation. There was shortage of Foreign exchange arised and they even had enough Foreign Currency to purchase necessary goods.
Then Govt apporoched to world bank for loan but they asked to mortgage the GOLD reserv and suggested them to come with economic reforms.
hope it helps
#jerri
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