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

Protection Policy Rationale

Question

The import protection policy was based on the notion that:

Select an answer
View Complete Answer & Explanation

Question (English)

The import protection policy was based on the notion that:

  1. Indian industries were very competitive
  2. Developing countries' industries could not compete against developed economies ✓ Correct
  3. India had too many exports
  4. Foreign goods were inferior
Explanation:
Correct Answer Explanation

Industries of developing countries were not in a position to compete against goods from more developed economies.

Key Points:
  • If protected, domestic industries would learn to compete over time.
  • Planners feared foreign exchange being spent on luxury imports.
  • 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.

Author Avatar
Anvi Classes

Anvi classes for Current Affairs, GK, and General Studies MCQs. Prepare for UPSC, SSC, and other competitive exams with our comprehensive quizzes.

Related Questions