India's Trade with South Asian Neighbours
Question
Consider the following statements: Which of the statements given above is/are correct?
- 1.
The value of Indo-Sri Lanka trade has consistently increased in the last decade.
- 2.
Textile and textile articles constitute an important item of trade between India and Bangladesh.
- 3.
In the last five years, Nepal has been the largest trading partner of India in South Asia.
Options
1 and 2 only
2 only
1 and 3 only
1, 2 and 3
Explanation
Trade volumes between India and Sri Lanka have fluctuated over the last decade, rather than consistently increasing (Statement 1 is incorrect). Bangladesh is a massive global textile hub; India exports raw cotton/yarn and imports finished garments, making textiles a crucial trade component (Statement 2 is correct). Bangladesh, not Nepal, is India's largest trading partner in South Asia (Statement 3 is incorrect). > One-line conceptual takeaway: Terms like 'consistently increased' are often incorrect in macroeconomic trends, and Bangladesh holds the top spot for India's regional trade. Answer: (b).
Question details
Year
2020
Paper
GS Paper 1
Question
Q64
Subject
Economy
Sub-topic
External Sector & Trade
Type
Statement-based
Difficulty
Hard
Nature
Current-affairs-linked
Source hint
Ministry of Commerce Trade Data
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