Indian Economic Development: Indian Economy 1950–1990 · Class 12 · CBSE · Commerce Economics
What did the policy of import substitution primarily seek to achieve in India during 1950–1990?
Practice question from Indian Economic Development: Indian Economy 1950–1990 (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-0BEDB8
What did the policy of import substitution primarily seek to achieve in India during 1950–1990?
- A.Replace imported goods with domestically produced goods by protecting domestic industriesCorrect answer
- B.Encourage consumers to purchase more luxury goods from foreign countries
- C.Remove all restrictions on imports and expose Indian firms to unrestricted competition
- D.Reduce domestic production and depend on foreign aid for essential goods
Solution
Import substitution aimed to reduce dependence on foreign goods by encouraging domestic production. Tariffs, quotas and other restrictions were used to protect Indian industries from foreign competition.
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