With reference to the "Import Substitution-based Industrialisation" in Pakistan, consider the following statements: 1. It was introduced in the late 1950s and 1960s. 2. It involved tariff protection for the manufacturing of consumer goods. 3. It allowed free import of competing goods to encourage efficiency. Which of the statements given above is/are correct?

The correct option is 1 and 2 only. Explanation Import Substitution Industrialisation (ISI) is an economic policy strategy adopted by many developing nations to replace foreign imports with domestic production. It aims to reduce foreign dependency and foster local manufacturing through protectionist measures. Statement-wise Analysis: - Statement 1 is Correct: Pakistan introduced a regulatory policy framework for import substitution-based industrialisation in the late 1950s and 1960s. This era was characterized by state intervention to build a domestic industrial base. - Statement 2 is Correct: The policy specifically involved tariff protection for the manufacturing of consumer goods. By imposing tariffs, the government aimed to make imported goods more expensive, thereby encouraging the consumption of domestically produced alternatives. - Statement 3 is Incorrect: The policy did not allow the free import of competing goods. On the contrary, it implemented direct import controls on competing imports to shield infant domestic industries from established international competitors. Free imports would contradict the fundamental premise of import substitution. Key Takeaway: Import Substitution Industrialisation is characterized by protectionism, utilizing tools like high tariffs and import quotas to protect domestic "infant industries" from foreign competition, rather than promoting free trade or efficiency through open imports.

With reference to the "Import… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 9: Comparative Development Experiences of India and its Neighbours

mcqmedium

With reference to the "Import Substitution-based Industrialisation" in Pakistan, consider the following statements:

It was introduced in the late 1950s and 1960s.
It involved tariff protection for the manufacturing of consumer goods.
It allowed free import of competing goods to encourage efficiency.

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 136

Options

A1, 2 and 3
B1 and 3 only
C1 and 2 only
D1 only

Did you get this right?

Solution

The correct option is 1 and 2 only.

Explanation

Import Substitution Industrialisation (ISI) is an economic policy strategy adopted by many developing nations to replace foreign imports with domestic production. It aims to reduce foreign dependency and foster local manufacturing through protectionist measures.

Statement-wise Analysis:

Statement 1 is Correct: Pakistan introduced a regulatory policy framework for import substitution-based industrialisation in the late 1950s and 1960s. This era was characterized by state intervention to build a domestic industrial base.
Statement 2 is Correct: The policy specifically involved tariff protection for the manufacturing of consumer goods. By imposing tariffs, the government aimed to make imported goods more expensive, thereby encouraging the consumption of domestically produced alternatives.
Statement 3 is Incorrect: The policy did not allow the free import of competing goods. On the contrary, it implemented direct import controls on competing imports to shield infant domestic industries from established international competitors. Free imports would contradict the fundamental premise of import substitution.

Key Takeaway:
Import Substitution Industrialisation is characterized by protectionism, utilizing tools like high tariffs and import quotas to protect domestic "infant industries" from foreign competition, rather than promoting free trade or efficiency through open imports.

Your note

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