Question

Why did indian government banned the foreign trade and foreign investment after independence?

Answer 1

Explanation:

The Indian government after independence has put barriers to foreign trade and foreign investment.this was considered necessary to protect and produce within the country from foreign competition.

Industry was just coming up in 1950s and 1960s and the competition from imports and the state would not have allowed these Industries to come up.

EXTRA INFORMATION :

But in 1991 the government decided that the time had come for Indian producers to compete with the producers around the globe. it felt that competition would improve the performance and produce within the countries since they would have to improve their quality.So it removed barriers on foreign trade and foreign investment