Inward looking trade policy was adopted by the Indian government during the initial reform process d...........

Economics (CUET) Delete

Inward looking trade policy was adopted by the Indian government during the initial reform process due to which of the following reason(s)?

To protect domestic companies from foreign competition

To save foreign exchange reserves

To ensure availability of all type of goods in the economy

All of the above

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Explanation:

- Option 1: To protect domestic companies from foreign competition

India adopted an inward-looking trade policy to shield its emerging industries from global competitors, allowing them to grow and stabilize first.

- Option 2: To save foreign exchange reserves

Limiting imports meant India could conserve its scarce foreign exchange reserves, essential for purchasing vital imports and maintaining economic stability.

- Option 3: To ensure availability of all types of goods in the economy

While the policy was primarily for protection and conservation, it wasn't necessarily focused on ensuring the availability of all goods. This sector was later bolstered by promoting self-reliance.

- Option 4: All of the above

While all reasons seem relevant, ensuring availability wasn't the direct aim of inward trade policy.