1. After Independence, it had put barriers to foreign trade and foreign investment.
2. Because to protect the producers within the country from foreign competition.
3. Industries were just coming up, with foreign competition, they may not survive.
4. Indian government levies tax on foreign goods.
5. And because of tax, prices of those goods become high.
6. Our goods will prosper.
7. Tax on imports is thus a barrier.
8. Around 1991, Indian government decided that the time had come for foreign competition.
9. It believed competition would improve our goods’ quality.
10. So it wished to remove these barriers.