What is a trade barrier? Why did the Indian Government put up trade
barriers after Independence? Explain.
Tax on imports is an example of trade barrier. India had earlier imposed trade barriers because it had to protect its own industries. Starting around 1991, some far- reaching changes in policy were made in India. The government decided to dive in for liberalisation policy. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations. Thus, barriers on foreign trade and foreign investment were removed to a large extent. .
Trade barrier is a barrier put by the govt. by increasing import tax rate so that the goods are not easily exchangable or more likely imported. This restriction was put up by the indian govt. to reduce the rates of imports or to further increase the prices of goods soo that they remain expensive in front of indian self produced goods... this barrier was put up so that indian industries could develop.
Above I gave all the points related to the q, now its on u to make the answer further detailed... hope my ans helps!
A trade barrier is any restriction put by the government to increase or decrease foreign trade.
The Indian government put up trade barriers after independence because of the following reasons:
- To protect indian traders from foreign competition.
- Industries were coming up at the stage, so indian industries were allowed to import only essential items.