Why had the Indian govt. put barriers to foreign trade and foreign investments after independence? Analyse the reasons.

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asked Mar 14, 2018 in Social Science by paayal (26,720 points) 4 6 54

Why had the Indian govt. put barriers to foreign trade and foreign investments after independence? Analyse the reasons.

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answered Mar 14, 2018 by sanjaydas (61,430 points) 5 7 7
selected Mar 14, 2018 by faiz
 
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The Indian government has put barriers to foreign trade and foreign investments after independence because: 

(i) It wanted to protect the producers within the country from foreign competition.

 (ii) As the Industries were just coming up in the 1950s and 1960s the competition from imports at that stage would not have allowed these industries to come up. 

(iii) Indian allowed imports of only essential items such as machinery, fertilizers, petroleum, etc.

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