Concept:India's pre-1991 trade policy was protectionist, centered on import substitution industrialization (ISI) to promote domestic industries.
Explanation:The government used high tariffs to make imported goods costlier and protect local producers.
Quotas restricted the quantity of imports, limiting foreign competition.
This strategy aimed at self-reliance and reducing dependency on foreign products.
The Foreign Exchange Regulation Act (FERA) of 1973 further curbed foreign investment and trade.
State-owned enterprises dominated key sectors, and the economy remained largely closed.
This protectionist regime, while promoting domestic industry, led to inefficiencies, lack of innovation, and sluggish GDP growth (around 3.5% per year, termed the Hindu rate of growth).
Post-1991 reforms shifted toward liberalization, lowering tariffs and dismantling quotas.
Answer:High tariffs and quotas (Option C).