💨 Abstract

In 1957, India initiated a shift towards near autarky due to increased import demand and stagnant export revenues, resulting from inflation and a fixed exchange rate. The government tightened the import policy by reintroducing foreign-exchange budgeting and making it more restrictive, cutting imports of consumer goods and allowing imports from dollar-area countries to reduce discrimination against the dollar. This policy remained restrictive for the following years during the Nehru era.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖