Question

Which strategy, widely adopted in India's early economic planning, aimed to reduce foreign dependence and was a significant feature of industrial policy?

• A. Export Promotion
• B. Liberalisation
• C. Import Substitution
• D. Globalisation

Answer 1

Answer:

C. Import Substitution

The strategy widely adopted in India's early economic planning to reduce foreign dependence and a significant feature of industrial policy was Import Substitution. This approach aimed to boost domestic production by replacing imports with locally made goods, protecting domestic industries from international competition. The trade policy was closely linked to the country's industrial policy. During the first seven Five-Year Plans, India's trade was marked by an inward-looking trade strategy, known as import substitution. The strategy aimed to enhance domestic production and protect local products from international competition