International Trade (External Sector) Part-III

Total Questions: 50

21. With reference to the India International Trade Fair-2021, which of the following statements is/are correct? [U.P. R.O/A.R.O. (Mains) 2021]

1. It was organised in November 2021 at Jaipur, Rajasthan.

2. Main theme of the event was 'Atmanirbhar Bharat'.

Select the correct answer from the code given below:

Code:

Correct Answer: (b) Only 2
Solution:The annual magnum opus of India Trade Promotion Organisation (ITPO), the 40th edition of India International Trade Fair (ITF), 2021 was held with the theme Atmanirbhar Bharat' in November, 2021 at Pragati Maidan, New Delhi. The 42nd edition of India International Trade Fair (IITF), 2023 was held with the theme 'Vasudhaiva Kutumbakam - United by Trade' in November, 2023 at Pragati Maidan, New Delhi.

22. Which one of the following pairs is correctly matched? [I.A.S. (Pre) 1993]

Correct Answer: (d) Import Quota - Physical Control
Solution:Import quota is a governmental restriction on the quantities of a particular commodity that may be imported within a specific period of time usually with the goal of protecting domestic producers of that commodity from the foreign, competition. Hence, import quota is a instrument of physical control.

Oftentimes, developing countries will impose protectionist measures such as quotas and tariffs to protect their fledgling industries from cheaper foreign alternatives to help reduce income losses to foreign countries and keep prices higher for domestic producers.

The point of an import quota is to limit how much of a foreign product can be imported into a country. The quota works by only allowing those with permission either through licensing or government agreement to bring in the quantity specified by the agreement. Once the quantity specified by the quota is reached, no more of the goods can be imported for that period.

23. Match the Column A with Column B and select the correct answer using the codes given below: [B. P. S.C. (Pre) 2015]

Column AColumn B
A. Open-general license 1. Employment
B. TRYSEM2. External Trade
C. Wholesale Price Index3. Debt Control
D. Cash Reserve Ratio4. Inflation

Code:

CodeABCD
(a)2143
(b)2431
(c)4321
(d)3214
Correct Answer: (a)
Solution:The correctly matched columns are as follows:
Column AColumn B
Open-general licenseExternal Trade
TRYSEMEmployment
Wholesale Price IndexInflation
Cash Reserve RatioDebt Control

24. Among the following commodities imported by India during the year 2000-01, which one was the highest in terms of Rupee value? [I.A.S. (Pre) 2003]

Correct Answer: (d) Pearls, precious and semi-precious stones
Solution:As per the question period, option (d) was the correct answer. According to Ministry of Commerce and Industry, Government of India, the import values (Q.E.) (in US$ million) of the given items are as follows:
Items2021-222022-232023-24 (P)
Pearls, precious & semi-precious stones310083070023832
Edible oils/Vegetable oils189922083814872
Fertilizers, crude and mfr.141701720710457
Chemical Material and Products111481220012748

25. India spends the maximum foreign exchange on the import of which item? [M.P.P.C.S. (Pre) 1995]

Correct Answer: (a) Petroleum products
Solution:As per the question period, and at present (According to the Ministry of Commerce and Industry, Government of India), India spends the largest amount of foreign exchange for import of petroleum products. In the year 2022-23, the import value of Petroleum, Crude and Products was at US $ 209418 million.

India's import of Petroleum, Crude and Products during the year 2022-23 accounted for about 29.4% of India's total imports, while import of Petroleum, Crude and Products accounted for about 26.52% (import value US$ 179618 million) of India's total imports in 2023-24(P).

26. Which of the following items is most significant item of Indian imports in terms of value at present? [U.P.P.C.S. (Mains) 2004]

Correct Answer: (d) Petrol and petroleum products
Solution:As per the question period, and at present (According to the Ministry of Commerce and Industry, Government of India), India spends the largest amount of foreign exchange for import of petroleum products. In the year 2022-23, the import value of Petroleum, Crude and Products was at US $ 209418 million.

India's import of Petroleum, Crude and Products during the year 2022-23 accounted for about 29.4% of India's total imports, while import of Petroleum, Crude and Products accounted for about 26.52% (import value US$ 179618 million) of India's total imports in 2023-24(P).

27. Which one of the following has been the most important item in the total imports of India in recent years? [U.P. Lower Sub. (Spl.) (Pre) 2004, U.P.P.C.S. (Spl.) (Mains) 2004]

Correct Answer: (c) Petroleum & Edible Oil
Solution:Among the given options, petroleum has been the most important item in the total imports of India in recent years. As per the Ministry of Commerce and Industry, Government of India, the percentage share of these items in total imports in 2023-24 (P) is as follows:
CommodityPercentage Share in Imports 2023-24 (Apr.-Mar.)
Chemical, Material and Products1.88
Fertilizers, Crude & Mfr.1.54
Petroleum, Crude & Products26.52
Edible oils/Vegetable oils2.20
Iron & Steel3.52

28. Two largest items of import in India in recent years are: [UP.P.C.S. (Pre) 1995]

Correct Answer: (b) Capital goods and petroleum products.
Solution:As per the question period, and at present petroleum products and capital goods jointly are the largest items of import in India. According to the Economic Survey 2022-23, the percentage share of major imports is as follows:
Commodity2020-212021-222022-23 (P) (Apr.-Sep.)
Fuel25.131.638.3
Petroleum, Oil & Lubricants21.026.430.3
Coal4.15.28.0
Capital Goods12.710.19.0
Food and allied products4.54.44.1
Fertilizers1.92.32.2
Chemicals7.97.47.2
Pearls, precious and semi-precious stones4.85.14.4
Gold & Silver9.08.16.4

Note: Economic Survey 2023-24 is not released till end - June, 2024

29. Currently which of the following commodity category has the maximum share in India's imports? [Chhattisgarh P.C.S. (Pre) 2013]

Correct Answer: (b) Petroleum products
Solution:As per the question period, and at present petroleum products and capital goods jointly are the largest items of import in India. According to the Economic Survey 2022-23, the percentage share of major imports is as follows:
Commodity2020-212021-222022-23 (P) (Apr.-Sep.)
Fuel25.131.638.3
Petroleum, Oil & Lubricants21.026.430.3
Coal4.15.28.0
Capital Goods12.710.19.0
Food and allied products4.54.44.1
Fertilizers1.92.32.2
Chemicals7.97.47.2
Pearls, precious and semi-precious stones4.85.14.4
Gold & Silver9.08.16.4

Note: Economic Survey 2023-24 is not released till end - June, 2024

30. In the year 2004-05, following groups had important share in India's imports: [U.P.P.C.S. (Pre) 2008]

1. Fuel

2. Capital Goods

3. Gold and Silver

4. Chemicals

Arrange the aforesaid items in desending order in terms of their percentage share and choose your answer with the help of given codes:

Codes:

Correct Answer: (a) 1 ,2, 3, 4
Solution:As per the question period and as per the data of 2022-23, option (a) is the correct answer. For the latest share of major imports,

As per the question period, and at present petroleum products and capital goods jointly are the largest items of import in India. According to the Economic Survey 2022-23, the percentage share of major imports is as follows:

Commodity2020-212021-222022-23 (P) (Apr.-Sep.)
Fuel25.131.638.3
Petroleum, Oil & Lubricants21.026.430.3
Coal4.15.28.0
Capital Goods12.710.19.0
Food and allied products4.54.44.1
Fertilizers1.92.32.2
Chemicals7.97.47.2
Pearls, precious and semi-precious stones4.85.14.4
Gold & Silver9.08.16.4

Note: Economic Survey 2023-24 is not released till end - June, 2024