The main reason for protecting domestic industry from imports in the early plans was that

foreign goods were always of much lower quality than Indian goodsCorrect answerYour answerIndia had too much foreign exchange and wanted to spend less of itCorrect answerYour answerother countries refused to sell any goods to IndiaCorrect answerYour answernew Indian firms could not yet compete with established foreign onesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

An infant industry needs time to grow and cut its costs; protection gives it that time.
Planners also feared that imports would use up scarce foreign exchange.

Worth noting

Foreign exchange was scarce, not plentiful; saving it was a reason for protection.

Concept: Infant industry argument
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsImport substitution, tariffs and quotas

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Ten questions from Industry & Trade, 1950–90, at your own pace.

The main reason for protecting domestic industry from imports in the early plans was that

Explanation