(i) "During the post-independence era till 1990s, India's inward-looking trade policy was supported by various trade barriers." Do you agree with the given statement ? Give valid explanation in support of your answer. (ii) The 'Atmanirbhar Bharat Initiative' carries forward the same spirit of self-reliance, which was adopted by the Government after 1947. In the light of the given statement, explain why self-reliance was considered as an important planning objective after independence. (i) The New Economic Policy (NEP) of 1991 took stabilisation measures and structural measures to correct the prevailing situations. Briefly discuss these measures. (ii) "The Industrial Policy Resolution (IPR), 1956 classified all the industries based on state ownership and control in various categories." Do you agree with the above statement ? Give valid reasons in support of your answer.

Question

Accepted Answer

(i) **I agree that India's inward-looking trade policy was supported by trade barriers.** Justification:

**Tariff Barriers:**
- High import duties to protect domestic industries
- Made foreign goods costlier

**Non-Tariff Barriers:**
- Quantitative restrictions on imports
- Import licensing requirements
- Quotas on foreign goods

**Justification:**
- Protect nascent domestic industries
- Achieve self-reliance
- Prevent outflow of foreign exchange
- Promote employment generation

**Impact:**
- Protected domestic industries
- Reduced efficiency and competition
- Limited consumer choice
- Technology remained outdated
- India couldn't compete internationally