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What was a significant contributing factor to the increased production costs for Indian producers in recent years?
  • a)
    Decrease in labor costs
  • b)
    Increase in import tariffs
  • c)
    Reduction in export demands
  • d)
    Expansion of Global Value Chains
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What was a significant contributing factor to the increased production...
The increase in import tariffs, particularly on essential intermediate inputs, has significantly raised production costs for Indian producers. Since 2017, the average Most Favoured Nation (MFN) tariff has risen, which diminishes competitiveness in the global market. An interesting aspect of this situation is that while tariffs can protect domestic industries, they can also lead to higher prices for consumers and reduce the overall efficiency of the economy.
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What was a significant contributing factor to the increased production costs for Indian producers in recent years?a) Decrease in labor costsb) Increase in import tariffsc) Reduction in export demandsd) Expansion of Global Value ChainsCorrect answer is option 'B'. Can you explain this answer?
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