Indian Economy 1950-1990 — Economics STD 12 Humanities & Commerce — Question

A country can achieve economic growth and modernization by using its own resources or by using resources imported from other countries. Self-reliance means avoiding imports of those goods which could be produced in domestically. Achieving self-reliance was considered important for a developing country like India to reduce the country's dependence on foreign products, specially for food. Dependence on foreign goods and services could make the country vulnerable to foreign interference in economic policies and hence result into loss of economic sovereignty. This was a great fear after being under colonial rule for such a long time. It was also considered important as imports may promote economic growth and consumer satisfaction but this may be al the cost of domestic infant industries. Further, imports drain away the scarce foreign reserves that are of prime importance to any developing and underdeveloped economy. Therefore, achieving self-reliance was considered to be an important objective for India in order to avoid being acquiescent to the developed nations.