When limits are put on the number of imports is referred to as Quotas . These are non-tariff barriers to the number of imports and exports. Fixation of quotas helped in restricting imports. As a result, the domestic firms could expand without fear of competition from the developed economies and multinationals.

Tariffs are referred to as taxes on the import of goods and services. Imposition of tariff makes imported goods more expensive which discourages usage of those goods, as a result, reduction in imports can be observed. The tariff on imported goods helped in restricting imports. As a result, the domestic firms could expand without fear of competition from the developed economies and multinationals.

Define the following terms: Import Substitution Quota

1. Import Substitution: It refers to a policy of replacement or substitution of imports by domestic production. This policy can serve two definite objectives: Savings of precious foreign exchange; and Achieving self-reliance Reasons for Import Substitution To enable them to compete against the goods produced by more developed economies. To prevent the drain of foreign exchange reserves on the import of luxury goods. 2. Quotas: It refers to the numerical limits on the number of goods that can be imported or exported during a specified time period.If the importer imports more than the specified limit, he has to pay a penalty or fine.

EASY

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What are the two ways by which domestic industries can be protected from imports?

Important Questions on Indian Economy 1950-1990

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Define "Quota".

HARD

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Find out and prepare a list of major items that India imported and exported during $1990 - 91$ and $2018 - 19$ .

(a) Observe the difference

(b) Do you see the impact of self-reliance? Discuss

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

_____(Quotas/Tariffs) refers to fixing the maximum limit on the import of a commodity by a domestic producer.

HARD

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

The protection of domestic industries through import substitution suffered from two drawbacks. Mention them.

HARD

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Explain how import substitution can protect domestic industry?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

What refer to taxes levied on imported goods?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

What are tariffs?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

_____(Import Substitution/Export Promotion) refers to a policy of replacement or substitution of imports by domestic production.

HARD

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy's resources. Discuss the usefulness of public sector undertakings in the light of this fact.

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

The policy of 'Import Substitution' was targeted to protect _____(domestic/foreign) industries.

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Define the following terms:

Import Substitution
Quota

HARD

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Briefly discuss the progress of Indian economy during the first seven plans in the agriculture, industrial and trade sector.

MEDIUM

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

How does import substitution protect domestic industries?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

What do we mean by import substitution?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

_____(Import Substitution/Export Promotion) policy followed in first seven five year plans of India, aimed at substituting imports with domestic production.

MEDIUM

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

To protect goods produced in India from imports, Government made use of which trade reforms?

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Taxes imposed on imported goods are known as_____(tariffs/Quotas).

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Inward looking trade strategy is also known as the policy of_____(Import Substitution/Export Promotion).

EASY

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

Import substitution has replaced imports with the _____(domestically/foreign)produced goods.

MEDIUM

Economics>Indian Economy Post-independence>Indian Economy 1950-1990>Trade Policy of Import Substitution

State the meaning of import substitution. Explain how import substitution can protect the domestic industries.

What are the two ways by which domestic industries can be protected from imports?

Important Questions on Indian Economy 1950-1990

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