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Why Was It Necessary for a Developing Country like India to Follow Self-reliance as a Planning Objective? - Economics

Answer in Brief

Why was it necessary for a developing country like India to follow self-reliance as a planning objective?

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Solution

Self-reliance implies discouraging the imports of those goods that could be produced domestically. Achieving self-reliance is of prime importance for a developing country like, India as otherwise, it would increase the country’s dependence on foreign products. Dependence on foreign goods and services can promote economic growth of India but this would not contribute to the development of domestic productive resources. Dependence on foreign goods and services provides impetus to foreign country’s industries at the cost of domestic infant industries. Further, imports drain away the scarce foreign reserves that are of prime importance to any developing and underdeveloped economy. Therefore, achieving self-reliance is an important objective for developing countries in order to avoid themselves from being acquiescent to the developed nations.

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NCERT Class 12 Economics - Indian Economic Development
Chapter 2 Indian Economy 1950-1990
Exercise | Q 10 | Page 34
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