Trade barriers are the restrictions that are imposed by the government on free import and export activities so as to protect its producers and entrepreneurs
The Indian government put barriers on foreign trade and foreign investment after independence because:
- It was considered necessary to protect the producers within the country from foreign competition.
- In 1950s and 1960s, the industries were in nascent stage and competition from imports at that stage would not have allowed these industries to develop.
- Therefore, India allowed the imports of only essential items like machinery, fertilizers, petroleum etc.