Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What do you mean by "Import substitution strategy"?

Options:

replacing or substituting domestic production with imports

replacing or substituting exports with domestic production

replacing or substituting imports with domestic production

both 1 and 3

Correct Answer:

replacing or substituting imports with domestic production

Explanation:

Import substitution strategy, often known as inward looking trade strategy, aims at replacing or substituting imports with domestic production. For example: instead of importing vehicles made from foreign country, industries would be encouraged to produce them in India itself.