Question

“In the post-independence era, India adopted a protective tariff policy.”

Do you agree with the given statement ? Justify your answer with any two valid arguments.

Hint:

Agree. High tariffs after independence promoted domestic production through import substitution and protected emerging industries from foreign competition.

Answer 1

Step 1: State the stand:
A protective tariff policy means the government puts high tariffs (taxes) on imports to protect domestic producers.
After independence India followed import substitution and built up its own industry behind such protection.
So we agree with the statement.

Step 2: Argument 1: promote domestic production:
High tariffs made imported goods costly. So buyers turned to goods made in India.
This promoted domestic production by substituting imports with locally produced goods.

Step 3: Argument 2: safeguard emerging industries:
India had young industries after independence and could not compete with large foreign firms.
Tariffs shielded these industries from intense foreign competition, so they could grow and develop on a sustainable basis.

Final Answer:
Yes, India adopted a protective tariff policy to promote domestic production by import substitution and to safeguard emerging industries from foreign competition.