Indian government reduced the tariff on import of handicrafts from foreign countries. The tariff was 60% earlier, which was now reduced to 30%. According to you, which of the following would be the result?

As, import promoting policies are being laid by the government, it will lead to an increase in the imports of the country. Due to increase in imports, there would be a negative shift in the balance of payment position. Due wo which deficit BoP may take place.