Question

why did the government of india remove trade barriers ? Explain the reasons

Answer 1

In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries. It felt that foreign competition would in fact improve the quality of goods produced by Indian industries. This decision was also supported by powerful international organisations.

Answer 2

Hey,

answer of your question:

1) India was lacking are serious economic crisis in 1990 to 91 because of slow economic growth, inefficient public Enterprises, high inflation and Rising fiscal defecit.

2) the Government of India decided that the time has came for Indian producer to compete with producer around the globe .

3) the decision to remove ztrade barriers was supported by powerful international organisation like WTO etc .

4) removing diarrhoea for restriction site by the government is known as liberalisation.

hope it's helpful for you

have a nice day