Answer:
Barriers
to foreign trade and investment were put by the Indian government to protect
domestic producers from foreign competition, especially when industries had
just begun to come up in the 1950s and 1960s. Competition from imports (except essential
goods) would have dealt a death blow to growing industries. This policy was
changes in 1991 because Government felt that
(i) domestic producers were now ready
to complete with foreign industries.
(ii) foreign competition would improve the quality of goods produced by Indian
industries.
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