Implications of Inward Looking Trade Policy in India (1950-1990)
Inward looking trade policy, also known as import substitution industrialization (ISI), was adopted by India from 1950 to 1990. This policy aimed at promoting self-sufficiency by restricting imports and promoting domestic industries. Let's explore the implications of this policy in detail:

Impact on Industrialization:
- The inward looking trade policy led to the growth of domestic industries as they were protected from foreign competition through high tariffs and import restrictions.
- This policy encouraged the establishment of a wide range of industries in India to produce goods that were previously imported.

Impact on Economic Growth:
- The focus on domestic production helped in reducing dependency on imports, thereby improving the balance of trade.
- However, the policy also led to inefficiencies in the domestic industries due to lack of competition and technological advancements.

Impact on Consumers:
- Consumers faced limited choices and higher prices for goods due to protectionist measures that restricted imports.
- The quality of domestic products was often lower compared to imported goods due to lack of competition.

Impact on Foreign Relations:
- Inward looking trade policy strained relationships with trading partners as India focused on self-sufficiency rather than promoting international trade.
- India faced criticism from other countries for not opening up its markets and practicing protectionism.

Overall Impact:
- While the inward looking trade policy helped in developing some domestic industries and reducing dependency on imports, it also had negative consequences such as inefficiencies, limited choices for consumers, and strained foreign relations.