Correct Answer: Export promotion

Solution : The correct answer is (c) Export promotion

The policy of export promotion aimed to replace import-oriented development with export-oriented growth in India. Import substitution was an earlier strategy that focused on developing domestic industries to replace imports and achieve self-sufficiency. However, recognizing the limitations of this approach, India shifted its focus towards export promotion to drive economic growth.

Export promotion policies involve creating a favorable environment for businesses to increase their exports. This includes providing incentives, reducing trade barriers, improving infrastructure, enhancing access to international markets, and promoting competitiveness. The objective is to encourage domestic industries to produce goods and services that can be sold in foreign markets, thereby earning foreign exchange and stimulating economic growth.