Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
What does inward looking trade policy aim at?
Options:
Substituting imports with domestic products
Substituting imports of consumer goods with capital goods
Following an open economy model
Restriction on movement of currency flows
Correct Answer:
Substituting imports with domestic products
Explanation:
Inward looking policy is often known as import substitution. In order to reduce the foreign dependency, India promoted production of goods domestically than importing it from foreign countries.