Question : The foreign trade policy of India during 1951-1991 primarily aimed at promoting which of the following?
Option 1: Import substitution
Option 2: Export promotion
Option 3: Protectionism
Option 4: Bilateral trade agreements
Correct Answer: Import substitution
Solution : The correct answer is (a) Import substitution.
During this period, India followed a strategy of import substitution industrialization (ISI), which aimed to reduce dependence on imports by promoting domestic production of goods. The focus was on developing domestic industries to produce goods that were previously imported, with the goal of achieving self-sufficiency and reducing the trade deficit.
To support import substitution, the Indian government implemented various policies and measures such as high tariffs, import licensing, and restrictions on foreign investment. These policies aimed to protect domestic industries from foreign competition and promote the growth of domestic manufacturing.
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