Question

India relaxed its policies of providing undue protection to domestic industries from foreign competition. Give reason.

Answer 1

• In 1991, International Monetary Fund (IMF) declared a list of several nations who had taken enormous loans from IMF. The IMF forced those countries to globalize and upgrade the technologies and hence grow their nations.
• IMF also declared that until the countries did this, it would not give any further loans.
• India was one of those countries. Hence, India had to relax its policies of providing undue protection to domestic industries from foreign competition.