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

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#1

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.