International Trade (Part – IV)

Total Questions: 22

1. Which of the following set of commodities are exported to India by the arid and semi-arid countries in middle east? [I.A.S. (Pre) 1996]

(a) Raw-wool and carpet
(b) Fruits and palm oil
(c) Precious gems and pearls
(d) Perfume and coffee

Correct Answer: (b) Fruits and palm oil

Solution:

India imports fruits, dry fruits and palm oil from the arid and semi-arid countries in middle east.

2. For which one of the following items, is Tirupur well- known as a huge exporter to many parts of the world? [I.A.S. (Pre) 2005]

(a) Gems and Jewellery
(b) Leather goods
(c) Knitted garments
(d) Handicrafts

Correct Answer: (c) Knitted garments

Solution:Tiruppur (or Tirupur) is India's textile city, also known as the Manchester of South India, is located in Tamil Nadu. Tiruppur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. It is well known as a huge exporter of knitted garments to many parts of the world. The city accounts for 90 percent of India's cotton knitwear export.

3. The rank of India in World Textile Exports is: [U.P.P.C.S. (Pre) 2007]

(a) First
(b) Second
(c) Third
(d) Fourth

Correct Answer: (c) Third

Solution:According to Annual Report, 2022-23 of Ministry of Textiles, Government of India, the Indian Textile Industry is the second largest producer of MMF Fiber after China. India is the third largest exporter of Textiles and Apparels in the world.

4. The largest importer country of Indian textiles is: [U.P. Lower Sub. (Pre) 1998]

(a) Italy
(b) Germany
(c) United Kingdom
(d) United States of America

Correct Answer: (d) United States of America

Solution:According to data released by Ministry of Commerce and Industry, Government of India, United States of America is the largest importer of Indian textiles. India exported largest quantity of textiles to USA (29%) in the year 2022-23, fol- lowed by the Bangladesh (7%), UK and UAE (6%) and Ger- many (4%).

5. Which of the following States contributed maximum to India's exports in dollar terms in 2007-08 and 2008-09: [U.P.P.C.S. (Spl.) (Mains) 2008]

(a) Gujarat
(b) Tamil Nadu
(c) Maharashtra
(d) Punjab

Correct Answer: (c) Maharashtra

Solution:As per the question period Maharashtra contributed maximum to India's export. According to Government of India, Ministry of Commerce and Industry, India's top exporting States and share of their exports (in percent) in 2022-23 and 2023-24 (P) were as follows:

State	2022-23 (%)	2023-24 (%)
Gujarat	33.12%	30.75%
Maharashtra	16.06%	15.37%
Tamil Nadu	9.01%	9.96%
Karnataka	6.19	6.09%
Uttar Pradesh	4.81%	4.71%

Note: As per NITI Aayog's 'Export Preparedness Index 2022" (Released in July, 2023), the top 3 exporter States in 2021-22 were as follows: 1. Gujarat 2. Maharashtra and 3. Tamil Nadu.

6. Assertion (A): During the year 2001-02, the value of India's total exports declined, registering negative growth of 2.17%. [I.A.S. (Pre) 2003]

Reason (R): During the year 2001-02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.

(a) Both A and R are individually true and R is the explanation of A correct
(b) Both A and R are individually true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true

Correct Answer: (d) A is false, but R is true

Solution:As per the question period, option (d) was the correct answer. According to the Economic Survey 2022-23, the total exports were decreased by 6.9 percent in the year 2020-21 as compared to the year 2019-20. Iron and steel, coffee, textiles and marine products had also registered negative export growth during the same period. However, after the pandemic period, India's exports rose by 44.6 percent to about US$ 422 billion in 2021-22 and all of the above products have also registered positive export growth.

7. Match List-I and List-II, and select the correct answer using the codes given below the lists: [I.A.S. (Pre) 1997]

List I (Commodities exported from India)	List II (Countries of destination)
A. Iron Ore	1. Russia
B. Leather goods	2. USA
C. Tea	3. Japan
D. Cotton fabrics	4. UK
	5. Canada

Codes:

	A	B	C	D
(a)	5	1	2	3
(b)	3	1	4	2
(c)	1	5	4	3
(d)	3	4	1	2

Correct Answer: (b)

Solution:Japan is a major importer of India's iron ore. India exports iron ore to Japan from Bailadila mines. United Kingdom is a major importer of India's tea, India exports leather goods to Russia, while USA is a major importer of cotton fabrics of India. Hence, option (b) is the correct answer.

8. The largest quantity of steel was exported by India in [U.P.P.C.S. (Mains) 2003]

(a) USA
(b) Japan
(c) China
(d) Iraq

Correct Answer: (c) China

Solution:China had the maximum share (23.0%) of India's iron and steel exports in 2003-04. According to Government of India, Ministry of Steel (data released in May, 2024) India's finished steel exports were at 7.49 million tonnes in 2023-24 (P), against 6.72 million tonnes in 2022-23. Italy is the top steel export destination during 2023-24 (P), followed by Belgium.

9. India export maximum leather to: [U.P.P.C.S. (Pre) 1994, U.P.P.C.S. (Mains) 2002]

(a) U.S.A.
(b) U.S.S.R.
(c) England
(d) W. Germany

Correct Answer: (a) U.S.A.

Solution:As per the question period as well as at present, United States of America is the largest importer of Indian leather and leather goods. As per the Economic Survey 2022-23 total leather and leather products export from India stood at US $ 4.4 billion in 2021-22. As per DGCI&S data, during April 2023 to March 2024, the major markets for Indian leather and leather products were USA (19.13%), Germany (11.31%), UK (8.55%), Italy (6.82%) and France (5.27%).

10. At what rate did exports by India increase in 1994-95 ? [U.P.P.C.S. (Pre) 1995]

(a) 10%
(b) 13%
(c) 15%
(d) 18%

Correct Answer: (d) 18%

Solution:India's export registered a high growth rate of about 18 percent in 1994-95. According to the Economic Survey 2022-23, export growth rate in 2019-20 and 2020-21 were at (-) 5.1 percent and (-) 6.9 percent (mainly due to COVID-19 Pandemic), respectively. However, India's exports rose by 44.6 percent to about US$ 422 billion in 2021-22. India's exports registered a negative growth rate of 3.09 percent in 2023-24 (P).

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