Question

If India had continued its pre-1991 protectionist policies, which scenario would most likely occur?

• A. Faster inflow of foreign investment.
• B. Easy competition with global companies.
• C. Increased openness to the global market.
• D. Domestic industries shielded from international competition.

Hint:

Protectionism means shielding home industry.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks what would have happened if India had kept the old protectionist approach. We need to recall what protectionism did.

Step 2: Key point from the passage.
Before 1991 many laws protected the Indian market and Indian business from competition from the wider world.

Step 3: Check option 1.
Foreign investment grows when doors are opened. Protection keeps outsiders out, so this is wrong.

Step 4: Check option 2.
Easy competition with global firms would need open markets. Under protection it would be hard, so this is wrong.

Step 5: Check option 3.
Openness to the global market is liberalisation, which is the opposite of the protectionist policy. So this is wrong.

Step 6: Check option 4.
Shielding home industries from international competition is exactly what protectionism does. This is right.

Final Answer:
Continued protectionism would keep domestic industry shielded, option 4. \[ \boxed{\text{Option 4}} \]