Arrange the following in the order in which they happened:
(A) The Goods and Services Tax was introduced to create ‘one nation, one tax and one market’.
(B) India protected its domestic industries through quantitative restrictions on imports and very high tariffs.
(C) Quantitative restrictions on imports of manufactured consumer goods and agricultural products were fully removed.
(D) The New Economic Policy began dismantling quantitative restrictions on imports and exports.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B), (D), (C), (A)
(B) India protected its domestic industries through quantitative restrictions on imports and very high tariffs. — This was the policy before 1991.
(D) The New Economic Policy began dismantling quantitative restrictions on imports and exports. — The trade reforms began in 1991.
(C) Quantitative restrictions on imports of manufactured consumer goods and agricultural products were fully removed. — This was completed from April 2001.
(A) The Goods and Services Tax was introduced to create ‘one nation, one tax and one market’. — GST came in July 2017, after the 2016 amendment.
NCERT (2026-27): “Trade and Investment Policy Reforms: … In order to protect domestic industries, India was following a regime of quantitative restrictions on imports. This was encouraged through tight control over imports and by keeping the tariffs very high. These policies reduced efficiency and competitiveness which led to slow growth of the manufacturing sector. The trade policy reforms aimed at (i) dismantling of quantitative restrictions on imports and exports (ii) reduction of tariff rates and (iii) removal of licensing procedures for imports. Import licensing was abolished except in case of hazardous and environmentally sensitive industries. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed from April 2001. …” Glossary: “Goods and Services Tax – It is a single indirect tax on the supply of goods and services. It was introduced in July 2017 by abolishing a variety of taxes, such as sales tax and excise that prevailed in India. Under GST, tax is imposed on the basis of value addition at each stage of the movement of goods and services. Different slabs of tax rates, such as 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent, are imposed on almost all goods and services. This slab is same throughout the country.” |