In which year did the government decide to remove barriers to foreign trade and investment in India?

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1990

1992

Not known

1991

answer is D.

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Detailed Solution

In 1991, the government decided to remove barriers to foreign trade and investment in India.
India introduced the New Economic Reforms in 1991. The removal of trade barriers is a part of this reform only. As the country decided to transform the economy into an open economy from a closed economy, it was an important aspect to treat foreign and domestic products equally. In doing so, the government decided to remove trade barriers such as tariffs and quota restrictions on imports and exports. A closed economy is an economy that is not integrated with the rest of the world and uses its resources, goods, and services for development. Before 1991, India was also a closed economy.

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