Import Substitution Policy MCQs
Import Substitution Policy – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Indian Economy 1950–1990
Topic: Import Substitution Policy
Board: CBSE Board Examinations
Subject: Economics
Section: Indian Economy 1950–1990
Topic: Import Substitution Policy
Board: CBSE Board Examinations
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation. Each question includes detailed explanations for clear conceptual understanding.
1. Import substitution means:
Answer: B
Domestic industries produce goods previously imported.
Domestic industries produce goods previously imported.
2. Main aim of import substitution:
Answer: B
Reduce dependence on foreign goods.
Reduce dependence on foreign goods.
3. Policy followed mainly during:
Answer: B
It was central to planned development.
It was central to planned development.
4. Protection given through:
Answer: A
High import duties discouraged foreign goods.
High import duties discouraged foreign goods.
5. Quotas refer to:
Answer: B
Limited volume of imports allowed.
Limited volume of imports allowed.
6. Benefited industries:
Answer: A
Protection helped local production grow.
Protection helped local production grow.
7. Import substitution encouraged:
Answer: A
Domestic industries expanded.
Domestic industries expanded.
8. Foreign exchange saved by:
Answer: B
Lower import bills conserved forex.
Lower import bills conserved forex.
9. Policy supported:
Answer: A
Domestic capacity building.
Domestic capacity building.
10. Heavy industries protected through:
Answer: A
Shielded from foreign competition.
Shielded from foreign competition.
11. Import substitution limited:
Answer: A
Domestic firms faced less global competition.
Domestic firms faced less global competition.
12. License Raj supported:
Answer: B
Industrial licensing restricted imports.
Industrial licensing restricted imports.
13. Technology access became:
Answer: B
Import barriers limited tech inflow.
Import barriers limited tech inflow.
14. Efficiency of firms was:
Answer: B
Lack of competition reduced efficiency.
Lack of competition reduced efficiency.
15. Consumers faced:
Answer: B
Restricted import variety.
Restricted import variety.
16. Policy encouraged:
Answer: A
Local production capability improved.
Local production capability improved.
17. Trade openness was:
Answer: B
Economy remained inward‑looking.
Economy remained inward‑looking.
18. Import substitution criticised for:
Answer: A
Protected firms became inefficient.
Protected firms became inefficient.
19. Liberalisation reversed:
Answer: A
Shifted toward open trade.
Shifted toward open trade.
20. Overall goal:
Answer: A
Build strong domestic industry.
Build strong domestic industry.