What is a trade barrier? Why did the Indian Government put up trade barriers after the independence?

CBSE Class 10 CBSE Class 10 Social Science
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1

What is a trade barrier? Why did the Indian Government put up trade barriers after the independence? Explain.

2

WHEN some restrictions are put on the import of foreign goods, it is called trade barrier. Tax on import is an example of trade barrier. It is called a barrier because some restrictions have been set up.

  • The Indian government had put barriers to foreign trade and foreign investment. Because this was considered necessary to protect the producers within the country from foreign competition.
  • The competition from well established foreign competitors would have crippled the new-bom industries of India.
  • All the developed countries, during the early stages of development have given protection to domestic producers through trade barrier.