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Consider the following statements regarding India's International Trade in the past decade:
1. India s both exports and imports have seen a rise continuously.
2. The value of imports continued to be higher than that of exports.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding India's International Tra...
However, from the below given image, it is clear that exports and imports have not seen a rise continuously. Hence statement 1 is not correct and statement 2 is correct.
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Consider the following statements regarding India's International Tra...
Statement 1: India's both exports and imports have seen a rise continuously.
India's international trade has indeed witnessed a significant increase in both exports and imports over the past decade. Several factors have contributed to this growth, such as globalization, liberalization, and technological advancements.
Factors contributing to the rise in exports:
1. Diversification of export products: India has made efforts to diversify its export basket by focusing on sectors such as pharmaceuticals, information technology, engineering goods, and textiles.
2. Market access: Various trade agreements and preferential trade arrangements with different countries and regions have enhanced market access for Indian products.
3. Competitive pricing: Indian products often have a competitive advantage due to lower production costs and a skilled labor force.
4. Foreign direct investment (FDI): Increased FDI inflows have facilitated technological advancements, improved infrastructure, and boosted production capacities, leading to higher exports.
Factors contributing to the rise in imports:
1. Growing domestic consumption: India's rising middle class and increasing disposable income have led to a surge in demand for imported goods, including consumer electronics, automobiles, and luxury items.
2. Energy needs: India's energy requirements have increased, leading to higher imports of crude oil, natural gas, and coal.
3. Raw materials and intermediates: To support its manufacturing sector, India imports raw materials, intermediates, and capital goods.
4. Technological advancements: Imports of high-tech goods and machinery are essential to support India's growing industries.
Statement 2: The value of imports continued to be higher than that of exports.
This statement is incorrect. Although India's imports have shown consistent growth, its exports have also increased significantly over the past decade. India has taken several measures to promote exports, such as providing export incentives, establishing export promotion councils, and improving trade facilitation. As a result, the trade deficit (the difference between imports and exports) has been narrowing in recent years. While the trade deficit still exists, it does not imply that the value of imports is consistently higher than that of exports.
Conclusion:
In conclusion, both statements are not correct. India's international trade has witnessed a rise in both exports and imports over the past decade. The narrowing trade deficit indicates that the value of exports has been increasing, challenging the notion that imports consistently outweigh exports.
India's international trade has indeed witnessed a significant increase in both exports and imports over the past decade. Several factors have contributed to this growth, such as globalization, liberalization, and technological advancements.
Factors contributing to the rise in exports:
1. Diversification of export products: India has made efforts to diversify its export basket by focusing on sectors such as pharmaceuticals, information technology, engineering goods, and textiles.
2. Market access: Various trade agreements and preferential trade arrangements with different countries and regions have enhanced market access for Indian products.
3. Competitive pricing: Indian products often have a competitive advantage due to lower production costs and a skilled labor force.
4. Foreign direct investment (FDI): Increased FDI inflows have facilitated technological advancements, improved infrastructure, and boosted production capacities, leading to higher exports.
Factors contributing to the rise in imports:
1. Growing domestic consumption: India's rising middle class and increasing disposable income have led to a surge in demand for imported goods, including consumer electronics, automobiles, and luxury items.
2. Energy needs: India's energy requirements have increased, leading to higher imports of crude oil, natural gas, and coal.
3. Raw materials and intermediates: To support its manufacturing sector, India imports raw materials, intermediates, and capital goods.
4. Technological advancements: Imports of high-tech goods and machinery are essential to support India's growing industries.
Statement 2: The value of imports continued to be higher than that of exports.
This statement is incorrect. Although India's imports have shown consistent growth, its exports have also increased significantly over the past decade. India has taken several measures to promote exports, such as providing export incentives, establishing export promotion councils, and improving trade facilitation. As a result, the trade deficit (the difference between imports and exports) has been narrowing in recent years. While the trade deficit still exists, it does not imply that the value of imports is consistently higher than that of exports.
Conclusion:
In conclusion, both statements are not correct. India's international trade has witnessed a rise in both exports and imports over the past decade. The narrowing trade deficit indicates that the value of exports has been increasing, challenging the notion that imports consistently outweigh exports.
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Consider the following statements regarding India's International Trade in the past decade:1. India s both exports and imports have seen a rise continuously.2. The value of imports continued to be higher than that of exports.Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding India's International Trade in the past decade:1. India s both exports and imports have seen a rise continuously.2. The value of imports continued to be higher than that of exports.Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding India's International Trade in the past decade:1. India s both exports and imports have seen a rise continuously.2. The value of imports continued to be higher than that of exports.Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding India's International Trade in the past decade:1. India s both exports and imports have seen a rise continuously.2. The value of imports continued to be higher than that of exports.Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?.
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