Topics: CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books

Import Substitution Policy

Question

India's trade policy during the first seven plans is technically called:

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Question (English)

India's trade policy during the first seven plans is technically called:

  1. Export promotion
  2. Import substitution ✓ Correct
  3. Free trade
  4. Bilateral trade
Explanation:
Correct Answer Explanation

Technically called import substitution — replacing imports with domestic production.

Key Points:
  • Also called inward looking trade strategy.
  • Protection through tariffs (tax on imports) and quotas (quantity limits).
  • No serious thought to promote exports until mid-1980s.

📚 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.

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