‘Barriers on foreign trade and foreign investment were removed to a

1.	‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.
Answer» Answer: The reasons justifying the given statement are: (i) In 1991 the government of India liberalised its policy and felt that Indian producers must compete with producers AROUND the world. (ii) The government had an opinion that trade competition would improve the performance of the local producers WITHIN the country since they will be FORCED to improve their quality. (iii) ANOTHER reason was the economic CRISES in India in 1990-91 and support of WTO and IMF which led the government to remove trade barriers. Hence, Indian government removed trade barriers to a large extent on foreign trade and foreign investment

‘Barriers on foreign trade and foreign investment were removed to a large extent in India since 1991.’ Justify the statement.

Answer»

Answer:

The reasons justifying the given statement are:

(i) In 1991 the government of India liberalised

its policy and felt that Indian producers must

compete with producers AROUND the world.

(ii) The government had an opinion that trade

competition would improve the performance of

the local producers WITHIN the country since they

will be FORCED to improve their quality.

(iii) ANOTHER reason was the economic CRISES in India

in 1990-91 and support of WTO and IMF which

led the government to remove trade barriers.

Hence, Indian government removed trade barriers to a

large extent on foreign trade and foreign investment