What was the main reason for the Indian government to impose barriers on foreign trade and investment after Independence?
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To protect domestic producers from foreign competition
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To encourage technological advancements
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To promote economic globalization
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To expand export opportunities
Answer:
Answer by Student
So, the correct answer is (A): To protect domestic producers from foreign competition
Detailed Answer by Teachoo
Let’s check all the options
- Option (A) To protect domestic producers from foreign competition -. The government wanted to shield the domestic industries from the cheaper and better quality imports that could harm their survival and growth. This is the correct answer.
- Option (B) To encourage technological advancements - The government did not encourage technological advancements by imposing barriers on foreign trade and investment. In fact, it discouraged the inflow of foreign technology and innovation that could have improved the productivity and efficiency of domestic industries. This is an incorrect answer.
- Option (C) To promote economic globalization - The government did not promote economic globalization by imposing barriers on foreign trade and investment. In fact, it isolated the Indian economy from the rest of the world and reduced its integration and interdependence with other countries. This is an incorrect answer.
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Option (D) To expand export opportunities
- The government did not expand export opportunities by imposing barriers on foreign trade and investment. In fact, it reduced the competitiveness and diversification of Indian exports by limiting their access to foreign markets and inputs. This is an
incorrect answer.
Thus, the correct answer is option (A): To protect domestic producers from foreign competition
