"Trade and Investment Policy of India had undergone comprehensive changes in the post reforms period of 1991." Do you agree with the given statement ? Justify your answer with any two valid arguments. Discuss any two salient features of Indian industrial sector during the period of 1950 - 1990.

Question

Accepted Answer

I **agree** that Trade and Investment Policy underwent comprehensive changes post-1991. Two valid arguments:

1. **Removal of Quantitative Restrictions:** Before 1991, there were strict quotas on imports and exports. Post-reforms, quantitative restrictions were greatly reduced. For example, restrictions on imports of manufactured consumer goods and agricultural products were fully removed from April 2001.

2. **Reduction in Import Duties:** Import duties were considerably reduced from peak rate of 250% to 10%. This improved competitiveness of domestic industries by enabling them to import raw materials at better prices.

3. **Removal of Export Duties:** Export duties were removed to increase competitive position of Indian goods in international markets.

4. **Relaxation in Import Licensing:** Import licensing was abolished except for hazardous and environmentally sensitive industries.