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 policy of protection 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. It was assumed that if the domestic industries were protected they would learn to compete in the course of time. Our planners also feared the possibility of foreign exchange being spent on import of luxury goods if no restrictions were placed on imports. Nor was any serious thought given to promote exports until the mid-1980s