Question

India implemented a self-sufficiency model after they gained independence from the UK. In the 1990s they switched to an International trade model that resulting in

a. a remarkably unresponsive economy.
b. an improved competitiveness and quality of Indian products.
c. higher tariffs on imported products.
d. a lowering of the GDP per capita.
e. a proliferation of monopolies.

Answer 1

In the 1990s, India shifted from a self-sufficiency model to an international trade model, leading to improved competitiveness and quality of Indian products. Economic liberalization and privatization fostered growth in multiple sectors, contributing to a more open and globally integrated economy.

Step-by-step explanation:

After gaining independence from the UK, India initially adopted a self-sufficiency model but transitioned to an international trade model in the 1990s. This shift resulted in b. an improved competitiveness and quality of Indian products. The economic reforms undertaken reduced government control over foreign investment and trade, led to the privatization of many publicly owned businesses, and aimed to make India's economy more open and globally integrated.

With the implementation of these reforms, India witnessed substantial growth in various sectors, including information services, healthcare, and industry. Privatization enhanced productivity and efficiency, though it also led to higher prices and sometimes reduced access to certain services. Nevertheless, these changes were pivotal in reshaping India's economic landscape, allowing the nation to become more competitive in the global market and improving the quality of its goods and services.