Social Science (087) — AI-generated practice question

After Independence, the Indian government placed barriers on foreign trade and foreign investment to protect domestic producers from foreign competition. Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to survive and grow. Therefore, India allowed imports of only essential items such as machinery, fertilisers, and petroleum. It is worth noting that all developed countries, during their early stages of development, similarly gave protection to their domestic producers.

Source: Globalisation and the Indian Economy, Liberalisation of foreign trade and foreign investment policy

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• The examiner expects two main points: protection of infant industries + restriction to essential imports only.
• Mentioning that even developed countries did the same adds a third point and rounds out a 3-mark answer.
• Avoid writing a long essay — 3 marks = ~3 clear points in concise sentences.
• Key term to use: trade barriers (shows correct terminology).