Question

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?

Answer 1

Indian government put barriers to protect domestic industries from foreign competitions in initial stage for their growth...

AS Indian government thought that Indian industries were strong enough to compete an they should compete to increase their quality of production, government removed barriers. Also government was forced by WTO and developed countries for removing trade barriers and allowing free trade

Answer 2

1) The government uses trade barrier for the following ways :-
1. To protect producers within the country from foreign competition.

2. To increase or decrease foreign trade i.e.regulate foreign trade.

3. Tobdecide what kinds of goods and how much of each should come into country.

2) Following are the reasons that foreign trade policy of government change in 1991:-

1. The time had come for the Indian producers to compete with producers around the globe as competition would improve performance.

2. Powerful international organizations persuaded and supported the step.

3. It paved the way of globalization.



Hope this will help u :)