Choose the given statement is True/False:

The Indian government had liberalised foreign trade and investments right after the country’s independence.

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True

False

answer is B.

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Detailed Solution

The above statement is false.
The Indian government was against liberalising the trade policies and investment opportunities for foreign countries during independence and all the 1950s and 1960s. They feared that competition from foreign countries would affect the domestic producers badly as these producers were not developed enough to meet the multinational giants of other countries. Another aspect was the prices that some of the foreign companies were charging which were lower than those kept by the domestic companies, which would also create issues for the domestic companies. It was only in 1991 that the Indian government decided to liberalise its foreign trade and investment policies which was also a result of the guidelines put forward by the IMF.
The correct statement is “The Indian government liberalised foreign trade and investments right after 1991”.

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