Consider the following methods adopted by the government to protect goods produced in India from imports.
(i) Heavy taxes were levied on imported goods.
(ii) The maximum limit on the imports of a commodity by a domestic user was fixed.
Choose the correct answer.
Both (i) and (ii) are true
- Governments impose heavy import taxes (tariffs) to protect domestic industries from foreign competition.
- Import quotas are set to restrict the quantity of goods that can be imported, thereby supporting local production.
- These policies are known as protectionist measures and are commonly used to safeguard economic interests.
- High tariffs make imported goods expensive, encouraging consumers to buy domestic alternatives.
- Such measures help in job creation and economic stability but may lead to trade disputes with other countries.
Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
