Which of the following statement (s) is/are correct?

Statement 1: The policy of protection followed by India after Independence was based on the notion that industries of developing countries were not in a position to compete against the goods produced by more developed economies.

Statement 2: It was assumed that if the domestic industries were protected they would learn to compete in the course of time.

Both the statements are correct.

The correct answer is option 3: Both the statements are correct.

The policy of protection followed by India after Independence was based on the assumption that domestic industries, particularly in a developing economy, were not yet competitive enough to compete against the more advanced and efficient industries of developed countries. This was due to various factors, including limited technology, inadequate infrastructure, and a lack of skilled labor.

It was believed that by protecting these domestic industries from foreign competition, they would have the opportunity to grow, learn from experience, and eventually become competitive enough to compete in the global market. This strategy, known as import substitution, was implemented to promote domestic industrialization and reduce dependence on imports.