GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Instead of exporting vehicles made in india to foreign countries, industries would be encouraged to import them.
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Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.
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Either A or B
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None of the above
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Detailed explanation-1: -Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages production in the domestic market. The purpose of this policy is to change the economic structure of the country by replacing foreign goods with domestic goods.
Detailed explanation-2: -Import substitution industrialization is an economic theory adhered to by developing countries that wish to decrease their dependence on developed countries. ISI targets the protection and incubation of newly formed domestic industries to fully develop sectors so the goods produced are competitive with imported goods.
Detailed explanation-3: -As per this policy, imported goods and services were to be substituted with domestic production to protect consumer goods produced in India against international competition. Tariffs: To regulate the flow of imported goods, high tariffs were imposed on them.