What trade policy did India follow until the mid-1980s?
Answer & explanation
Correct answer: option 4
The correct answer is option 4: Import substitution strategy
The industrial policy that India adopted was closely related to the trade policy. In the first seven plans, trade was characterised by what is commonly called an inward looking trade strategy. Technically, this strategy is called import substitution. This policy aimed at replacing or substituting imports with domestic production