The government decided to remove barriers on foreign trade and investment and introduce a new series of economic reforms in India in the year 1991.
NOTE – The government of India, after independence from British Rule, decided in favour of putting barriers to foreign trade and foreign investment in order to protect the domestic producers from foreign competition. The economy was weak at that stage and it was in the best interest of India to do so. However, after a long period of time, it was thought to be necessary to open up the Indian economy that was previously secured with barriers and regulations.
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