question_answer

Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the reasons.

Answer:

The Indian government after independence had put up barriers to foreign trade and foreign investments:

(i) This was considered necessary to protect the producers within the country from foreign countries.

(ii) Industries were just coming up in 1950s and 1960s and competition from imports at that stage would not allowed these industries to come up.

(iii) Thus, India allowed imports of only essential items such as-machinery, fertilisers, petroleum, etc.