(i) "India's inward looking trade policy during the post independence period was well supported by various tariff and non-tariff barriers." Do you agree with the given statement ? Justify your answer with valid arguments. (ii) "Navratna policy has facilitated the maintenance, promotion and disinvestment of Public Sector Undertakings (PSUs)." Justify the given statement with valid explanation. (i) "Every coin has two sides — debate over farm subsidies is one such a classic example of the same." Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies. (ii) "Suez Canal was used as a highway between India and Britain." Justify the given statement with valid arguments.

Question

Accepted Answer

I **agree** that India's inward looking trade policy was supported by tariff and non-tariff barriers. Justification:

**Tariff Barriers:**
- High import duties to protect domestic industries
- Made foreign goods costlier in domestic market
- Promoted import substitution industrialization

**Non-Tariff Barriers:**
- Quantitative restrictions on imports
- Import licensing requirements
- Quotas on foreign goods

**Justification:**
- To protect nascent domestic industries from foreign competition
- To achieve self-reliance in industrial production
- To prevent outflow of foreign exchange
- To promote employment generation

**Impact:**
- Protected domestic industries but reduced efficiency
- Limited consumer choice
- Technology remained outdated
- India couldn't compete internationally