The economic reforms of 1991 aimed to move India from a protected, inward-looking economy to a more open, market-oriented one. Liberalizing imports was a crucial part of this strategy. By reducing tariffs and dismantling non-tariff barriers, the government exposed domestic industries to international competition. This was intended to incentivize domestic firms to become more efficient, improve quality, and innovate to survive and compete.
Economic reforms were initiated in 1991 and exports stepped up, at the same time, imports were also liberalised to ______.
Asked in GPSC Prelims CSP 2 2021 · Topic: Nature of Indian Economy (Openness of Economy and Integration with Global Markets)
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Answer: B. Generate competition in domestic market
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