Question

Which of the following statements is incorrect?

Options

• Quotas limit the quantity of goods that can be imported

• The policy succeeded in developing a strong export sector through its inward orientation

• Licensing misuse by large industrial houses created the "Permit Licence Raj"

• Tariffs make imported goods costlier than domestic alternatives

Answer 1

The incorrect statement is the third one. The policy, being inward-oriented, failed to develop a strong export sector. The other statements are correct: tariffs tax imports to make them costlier, quotas limit import quantity, and licensing misuse was termed the "Permit Licence Raj".