Question

why did the government of india remove trade barriers? explain the reasons .

Answer 1

Due to fallowing reasons, the Government of India removed trade barriers

(i) India was lacing a serious/economic crisis in 1990-91 because of slow economic growth, inefficient public enterprises, high inflation and rising fiscal defecit.

(ii) The Government of India decided that the time had come for Indian producers to compete with producers around the globe.

(iii) The decision to remove trade barriers was supported by powerful international organisations like IMF, WTO, etc.

(iv) Removing barriers or restrictions set by the government is known as liberalisation

thanks

Answer 2

The government of india remove the trade barrier because government of india thinks that now the time has come that the producer of india compete with other producer throughout the world. It will increase their performance and they will produce better quality of goods.. This decision of removing trade barrier was supported by world trade organisation.