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Q.

Choose if the given statement is True/False:

After independence, the Indian economy was building itself, but the process was slow due to the recent political instability.

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a

True

b

False

answer is A.

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Detailed Solution

The above statement is True.
After independence, the Indian economy was building itself, but the process was slow due to the recent political instability. Therefore, the government imposed foreign trade and investments to protect the producers from foreign competition. If these restrictions had not been put up, foreign players would have invaded the Indian market, capitalising on its cheap and easy labour, readily available market, and better raw materials. It would have crumbled the already shaky Indian economy.

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