Question

Which of the following statement is not true about the need for import substitution for Indian economy?

Options

• Unfavourable balance of trade.

• Devaluation of rupee. 

• Abundance of foreign aid. 

• Shortage of essential commodities.

Answer 1

Abundance of foreign aid. 

Explanation:

Import substitution industrialization (ISI) is a trade and economic policy that proposes substituting home output for international imports in order to protect domestic industry. As a result, no external help was required.