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India adopted an inward-looking trade strategy during the first seven Five-Year Plans (1951–1991). This strategy focused on import substitution, self-reliance, and reducing dependence on foreign goods by promoting domestic industries. Key Points: 1. It aimed to protect domestic industries through high import tariffs. 2. Focused on heavy industries, public sector development, and subsidies. 3. Resulted in slow industrial growth due to inefficiencies. 4. Liberalization policies began in 1991 to transition to outward-looking strategies. 5. Encouraged small-scale industries with government support. Bee Facts: • Inward-looking strategy (a): Focus on self-reliance and import substitution. • Partially outward-looking strategy (b): Not adopted until 1991 reforms. • Partially inward-looking strategy (c): Misleading, as India was inward-focused. • Outward-looking strategy (d): Focused on exports, adopted post-1991.
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