Which of the following options is also known as "Inward looking trade strategy" that India adopted in the first seven five-year plans?
Answer & explanation
Correct answer: option 3
In the first seven plans, trade was characterized by what is commonly called an inward-looking trade strategy. Technically, this strategy is called import substitution policy. This policy aimed at replacing or substituting imports with domestic production. For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.