Practicing Success

Target Exam

CUET

Subject

Political Science

Chapter

Politics in India Since Independence: Politics of Planned Development

Question:

In the decades of 50s-70s, why did the government impose substantial tariffs on imports?

Options:

To increase the income from imports

To balance the trade deficits

To boost the quantity of imports

To protect domestic industries
Correct Answer:
To protect domestic industries
Explanation:

The Second FYP stressed heavy industries. It was drafted by a team of economists and planners under the leadership of P. C. Mahalanobis. If the first plan had preached patience, the second wanted to bring about quick structural transformation by making changes simultaneously in all possible directions. Before this plan was finalised, the Congress party at its session held at Avadi near the then Madras city passed an important resolution. It declared that the ‘socialist pattern of society’ was its goal. This was reflected in the Second Plan. The government imposed substantial tariffs on imports in order to protect domestic industries. Such a protected environment helped both public and private sector industries to grow.