Import substitution strategy is commonly called _________.

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 02 Aug, 2023 Shift 3)

Answer 1

The correct answer is "Inward looking trade strategy."

Key Points

Import substitution strategy refers to a government policy aimed at promoting domestic production by substituting imported goods with domestically produced goods.
Import substitution strategy is also known as inward looking trade strategy which aims to produce goods domestically which are imported to our nation.
This strategy involves imposing tariffs and other trade barriers on imported goods to make them more expensive and less competitive in the domestic market.
The goal of import substitution is to reduce a country's reliance on imports and build up its domestic industries, which can lead to economic growth and development.

Additional Information

"Make in India campaign," is a government initiative to promote manufacturing and investment in India.
- The Prime Minister introduced the Made in India program in September 2014 as a component of a larger series of nation-building programs.
"Outward looking trade strategy," refers to a policy of promoting exports and opening up to international trade.
- The widely recognized definition of the outward-oriented trade strategy based on price incentives is when the effective exchange rate (EERx) of the nation is lower than its import rate (EERm).
"Balanced trade strategy," refers to a policy of maintaining a balance between imports and exports.
- Controlling inflation and enforcing tariffs or other barriers, including import certificates, on a country-by-country basis are two ways to implement balanced trade.