Question

why had Indian government put barriers to the foreign trade and foreign investment after independence ?give one reason

Answer 1

1. This was done to protect the producers within the country from foreign competition.

2. To protect the Indian economy from foreign infiltration in industries affecting the economic growth of the country as planned.

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Answer 2

Explanation:

The Indian government initiated barriers on the foreign investment and foreign trade after independence as the Indian government wanted to protect the domestic manufacturers or producers from the foreign competition.

The Indian government allowed the import of some selected and important items from the foreign markets such as machinery, fertilizers and vehicle oils, petroleum, etc. As multi-national industries starting up in 1950's and 1960's, the competition from foreign countries at that stage would not have allowed native industries to grow.