Question

Why did the govt of india remove trade barriers ?Explain tge 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.

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR..

Explanation:

1. The government of India decided that the Time had come for Indian traders to compete with the producers and manufacturers of the world.

2. Government felt that competition would improve the performance of producers.

3. The decision to remove trade barriers was supported by powerful international organizations like World Bank, World Trade Organization and International Monetary fund.

4. Businessmen are allowed to take decisions freely about their imports and exports. In this way Government decentralized the power to the businessmen.

5. Advance technology and Foreign Investment is required for the development of country.