Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

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?

Options:

reduced efficiency of the manufacturing sector.

increased competitiveness of the manufacturing sector.

slow growth of the manufacturing sector.

none of the above

Correct Answer:

increased competitiveness of the manufacturing sector.

Explanation:

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.