During the period of 1947-1990, India's trade policy was largely characterized by: 1947-1990

Correct option is A

The correct answer is: (a) An inward-looking strategy emphasizing import substitution and protection of domestic industries
Explanation:
· From 1947 to 1990, India adopted an inward-looking trade policy.
· The focus was on Import Substitution Industrialization (ISI), i.e., producing goods domestically instead of importing them.
· High tariffs, quotas, and licensing systems were imposed to protect Indian industries from foreign competition.
· The main objective was self-reliance and reducing dependence on foreign products.
· This policy continued until the 1991 LPG (Liberalisation, Privatisation, and Globalisation) reforms.
Inforation Booster:
· Import substitution meant encouraging domestic industries by restricting imports.
· The policy led to the growth of the public sector and license-permit raj.
· However, it also caused inefficiency and low competitiveness in Indian industries.
· Balance of payments crisis in 1991 forced India to shift to a liberalised trade policy.
· Post-1991, India embraced export promotion and global integration.
Additional Knowledge:
· Option (b) Free trade → Opposite of India’s restrictive trade approach during 1947–1990.
· Option (c) Liberal import policy → Adopted only after 1991 reforms, not before.
· Option (d) Export-oriented strategy → Followed by countries like South Korea in the 1960s, not India in this period.