Question

Why had government of India decided to remove the foreign trade restriction in late ${20}^{th}\text{century}$?

• A. To expand the rural industries
• B. It felt that competition would improve the performance of producers within the country.
• C. All of the above
• D. To gain more tax

Answer 1

The correct option is B It felt that competition would improve the performance of producers within the country.

Starting around $1991$, some farreaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality.