What is a trade barrier? Why did the Indian Government put up trade barriers after the independence? Explain.
What is a trade barrier? Why did the Indian Government put up trade barriers after the independence?
WHEN some restrictions are put on the import of foreign goods, it is called trade barrier. Tax on import is an example of trade barrier. It is called a barrier because some restrictions have been set up.
- The Indian government had put barriers to foreign trade and foreign investment. Because this was considered necessary to protect the producers within the country from foreign competition.
- The competition from well established foreign competitors would have crippled the new-bom industries of India.
- All the developed countries, during the early stages of development have given protection to domestic producers through trade barrier.