Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What trade policy did India follow until the mid-1980s?

Options:

Import-oriented strategy

Export-led growth strategy

Free trade policy

Import substitution strategy

Correct Answer:

Import substitution strategy

Explanation:

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