Question : Which policy aimed to protect domestic industries from foreign competition in India?
Option 1: Import substitution
Option 2: Export promotion
Option 3: Public-private partnership
Option 4: Swadeshi movement
Correct Answer: Import substitution
Solution : The correct answer is (a) Import substitution
Import substitution was a policy approach adopted by India with the aim of protecting domestic industries from foreign competition. This policy was prevalent during the early years of India's independence and continued for several decades.
Under import substitution, the government implemented measures to reduce dependence on imported goods by promoting the development of domestic industries that could produce those goods. The policy involved imposing high tariffs, import restrictions, and other trade barriers to discourage imports and protect domestic industries from foreign competition.
However, over time, the limitations of import substitution became apparent, including inefficiencies, lack of competitiveness, and a narrow domestic market. These factors eventually led to a shift in India's economic policies, with the initiation of liberalization measures in the early 1990s.
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Question : A consequence of economic liberalization in India was:
Option 1: Strengthening of labor unions
Option 2: Increased competition in domestic markets
Option 3: Expansion of the public sector
Option 4: Decrease in foreign direct investment
Question : The decline of the cottage industry in India during the colonial period was primarily due to:
Option 1: The introduction of modern machinery
Option 2: The lack of raw materials
Option 3: The competition from British manufactured goods
Option 4: The decrease in domestic demand
Question : Statement 1: Liberalization of the financial sector in India aimed to promote competition among banks.
Statement 2: The Reserve Bank of India (RBI) was abolished as part of financial sector reforms.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Question : Which sector witnessed increased competition due to liberalization in India?
Option 1: Agriculture
Option 2: Education
Option 3: Health care
Option 4: Telecom and communication
Question : The Competition (Amendment) Bill, 2022 belongs to _______ Ministry of India.
Option 1: Tribal Affairs
Option 2: Corporate Affairs
Option 3: Finance
Option 4: Law and Justice
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