In which year, the quantitative restrictions on imports of manufactured consumer goods and agricultural products were fully removed by the Government of India?

2001

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. The trade policy reforms initiated in 1991 as part of NEP aimed at

(i) dismantling of quantitative restrictions on imports and exports

(ii) reduction of tariff rates and

(iii) removal of licensing procedures for imports. Import licensing was abolished except in case of hazardous and environmentally sensitive industries.

Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed from April 2001. Export duties have been removed to increase the competitive position of Indian goods in the international markets.