Question : Statement 1: The Foreign Trade Policy of India during 1951-1991 focused on import substitution.
Statement 2: The policy aimed to reduce imports and promote domestic industries.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer:
Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true. The Foreign Trade Policy of India during the period of 1951-1991 did focus on import substitution. Import substitution industrialization (ISI) was a key economic policy during that time, aiming to promote domestic industries by reducing dependence on imports. The policy emphasized the development of domestic industries to produce goods that were previously imported.
Statement 2 is also true. The policy aimed to reduce imports and promote domestic industries as part of the import substitution strategy. The goal was to achieve self-sufficiency and reduce dependence on foreign goods by encouraging the growth of domestic industries. The policy implemented various measures, such as import controls, tariffs, and subsidies, to protect and promote domestic industries.
Therefore, the correct answer is that both statements are true.
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