In the context of India’s trade policies between 1947 and 1990, what was a common characteristic of the approach to imports?

Correct option is C

The correct answer is (c) Following a strategy of import substitution to protect domestic industries.
• India’s trade policy during 1947–1990 emphasized import substitution, aiming to reduce foreign dependence and encourage self-reliance in manufacturing.
Information Booster:
• Strategy aligned with the Industrial Policy Resolution of 1956.
• Focused on domestic production of industrial and capital goods.
• Import licensing and high tariffs restricted foreign goods.
• Goal: Promote self-sufficiency and conserve foreign exchange.
• Reforms post-1991 shifted to export promotion and liberalization.
Additional Knowledge:
• Policy guided by Five-Year Plans (particularly 2nd and 3rd Plans).
• Led to the License Raj system.
• Import substitution helped early industrialization but reduced competitiveness.
• 1991 reforms under LPG model ended restrictive trade practices.