Why did the Government of India remove trade barriers? Explain the reasons



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.