Why had the Indian government put barriers to foreign trade and foreign investments after independence? Analyse the reasons
Answer:
Indian government has put barriers to foreign trade and foreign investments after independence because:
- It wanted to protect the producer within the country from foreign competition.
- As the industries were just coming up in 1950’s and 1960’s the competition from inputs at that stage would not have allowed these industries to come up.
- Indian allowed imports of only essential items such as machinery fertilizers, petroleum, etc.