In the context of trade policy, 'Import Substitution' strategy aims at:
A. Promoting exports through subsidies
B. Replacing imports with domestic production through protection
C. Only reducing tariffs
D. Complete free trade
Answer: Option B
Solution (By JKSSB Mock Tests)
Import substitution industrialisation seeks to reduce dependence on imports by protecting and promoting domestic industries through tariffs, quotas and other measures.
Explanation:
Primary deficit = Fiscal deficit − Interest payments. It indicates the borrowing requirement of the government excluding interest payments on previous borrowings.
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