Protection from Foreign Competition Criticism
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Question (English)
Protection from foreign competition was criticised because:
- It made Indian goods too cheap
- Indian producers had no incentive to improve quality due to captive market ✓ Correct
- It led to excessive exports
- It reduced government revenue
Explanation:
Correct Answer Explanation
Due to import restrictions, producers had a captive market with no incentive to improve quality.
Key Points:
- Producers could sell low quality items at high prices.
- Competition from imports forces efficiency.
- Protection continued even after it did more harm than good.
📚 About this Topic — CH-2: INDIAN ECONOMY 1950–1990
This multiple choice question is from CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-2: INDIAN ECONOMY 1950–1990 to strengthen your preparation.
