Question

List out the features of new trade policy.

Answer 1

The trade policy of 1 April 1992 freed imports of almost all intermediate and capital goods. Only 71 items remained restricted. This would affect the domestic industries. Rationalization of tariff structure and removal of quantitative restrictions.
The Chelliah Committee’s report had suggested a drastic reduction in import duties. As a first step towards a gradual reduction in the tariffs, the 1991 -92 budget had reduced the peak rate of import duty.