SSC MTS EXAM

Detailed explanation-1: -The government decided to remove barriers on foreign trade and investment and introduce a new series of economic reforms in India in the year 1991.

Detailed explanation-2: -In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries.

Detailed explanation-3: -Liberalization of foreign investment policy has been a central component of economic reform in India, introduced in 1991.

Detailed explanation-4: -Answer: Trade barriers are restrictions set up by the government against foreign trade and foreign investment. This was done to protect the growing domestic producers against the competition of the foreign producers. Prior to 1991, in India, trade barriers existed in the form of tax on imports.