Why had Indian government put barriers …
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Posted by Sameer Joshi 6 years, 8 months ago
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Anshika Agrawal 6 years, 8 months ago
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Yogita Ingle 6 years, 8 months ago
1. The Indian government after independence had put barriers to foreign trade and investment in order to protect the domestic producers of goods and services from the foreign competition.
2. As the Indian economy was instable and weak after the British left India, it was important to allow the economy to develop and flourish itself in order to cope up with the high levels of development abroad.
3. Further, industries were coming up in the 1950s and 1960s, and tough competition from imports at that stage would not have allowed these industries to develop. Therefore, the number of imports was strictly regulated by the government for only certain essential items such as machinery, fertilizers, petroleum etc.
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