Trend of Foreign Exchange Outgo from Agricultural Imports in India

The correct answer is option 'B' - Decreasing. Let's understand why this is the correct answer.

1. Introduction
Foreign exchange outgo refers to the amount of foreign currency spent on importing goods or services. In the case of agricultural imports, it represents the amount of foreign currency spent on importing agricultural products into India.

2. Factors influencing the trend
The trend of foreign exchange outgo from agricultural imports in India is influenced by several factors. Some key factors are:

a. Agricultural production and self-sufficiency
India has focused on increasing agricultural production to achieve self-sufficiency in food grains. The government has implemented various policies and programs to enhance agricultural productivity and reduce dependency on imports. As a result, the need for agricultural imports has decreased over time, leading to a decrease in foreign exchange outgo.

b. Government policies and regulations
The Indian government has implemented policies and regulations to promote domestic agricultural production and reduce imports. These policies include import restrictions, tariffs, and subsidies to domestic farmers. Such measures discourage agricultural imports and reduce foreign exchange outgo.

c. Price fluctuations and global market conditions
The prices of agricultural commodities in the global market can fluctuate due to various factors such as weather conditions, supply and demand dynamics, and trade policies. These price fluctuations can impact the volume and value of agricultural imports. If the prices of imported agricultural products increase significantly, it may lead to a decrease in imports and thereby reduce foreign exchange outgo.

3. Analysis of the trend
Based on the above factors, the trend of foreign exchange outgo from agricultural imports in India is decreasing. This means that over time, India has been able to reduce its dependency on agricultural imports and improve self-sufficiency in this sector. The decrease in foreign exchange outgo indicates a positive trend for the Indian economy as it helps in conserving foreign currency reserves and promoting domestic agricultural growth.

4. Conclusion
In conclusion, the trend of foreign exchange outgo from agricultural imports in India is decreasing. This trend is influenced by factors such as agricultural production, government policies, and global market conditions. The decrease in foreign exchange outgo signifies India's progress towards self-sufficiency in the agricultural sector and is beneficial for the overall economy.