What is the meaning of the point 3rd of bad effects..... it is related to industrial sector
Dear student,
It means that in order to save foreign exchange country was following the policy of import substitution. This method seems unsuccessful as producing the goods which country once used to import was making it even more costly, which leads to fall in foreign exchange reserve. The condition worsen so much that we need to mortgage our gold reserves with world bank to secure our borrowing. Instead of opting for import substitution, the country should have focussed on promoting exports.
Regards
It means that in order to save foreign exchange country was following the policy of import substitution. This method seems unsuccessful as producing the goods which country once used to import was making it even more costly, which leads to fall in foreign exchange reserve. The condition worsen so much that we need to mortgage our gold reserves with world bank to secure our borrowing. Instead of opting for import substitution, the country should have focussed on promoting exports.
Regards