India had followed a policy of tight control over imports and kept the tariffs very high till 1991. Which of the following was NOT a consequence of such policy?
Answer & explanation
Correct answer: option 2
In order to protect domestic industries, India was following a regime of quantitative restrictions on imports. This was encouraged through tight control over imports and by keeping the tariffs very high. These policies reduced efficiency and competitiveness which led to slow growth of the manufacturing sector.