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Social Science — CBSE Class 10 board question

Q1. [2]
Why did the Indian Government restrict foreign trade and foreign investment between 1947 – 1991? Explain.
Previously asked in CBSE board exam
2025 32/3/1 Q24
Generated by claude-sonnet-4-6 · 2026-06-15 06:57 · grounding rag
Model Answer

The Indian government restricted foreign trade and foreign investment after Independence to protect domestic producers from foreign competition. Since industries were just coming up in the 1950s and 1960s, competition from imports at that stage would not have allowed these industries to develop. Therefore, only essential items like machinery, fertilisers, and petroleum were allowed to be imported.

Explanation

This is a standard 2-mark question from Chapter 4 (Globalisation). Examiners look for two clear points: (1) protection of domestic/infant industries from foreign competition, and (2) the context — industries were newly developing in 1950s–60s. Avoid writing too much; two focused sentences are enough. The exact phrase "industries were just coming up" from the textbook scores well.

Source: Globalisation and the Indian Economy, Chapter 4 — Liberalisation of foreign trade and foreign investment policy

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