Economic Background India has traditionally taken a defensive stance on trade. Its first leaders adopted a closed economic model when the country gained its independence in 1947. Wary of external influence following centuries of imperial domination, the newly minted government instated rules to prevent majority foreign ownership of Indian companies and erected formidable trade barriers. These, along with high taxes and extensive domestic regulations, restrained the market. Protected from external competition and undermined by chronic government corruption and poor infrastructure, Indian industry became deeply uncompetitive. One notable exception was the pharmaceuticals sector, in which the government's disregard for foreign patents created a nimble and innovative industry based on reverse engineering and reproducing Western goods. Agriculture was also of high political importance, given India's closed and poor economy and its largely rural population.