International Trade (Part – I)

Total Questions: 50

11. The exports of goods and services from India as a percentage of India's GDP in 2010-11 was: [U.P.U.D.A./L.D.A. (Spl.) (Pre) 2010]

Correct Answer: (c) 22 percent
Solution:The export of goods and services from India as a percentage of India's Gross Domestic Product in 2010-11 was about 22 percent. According to the World Bank data, the exports of goods and services from India as percentage of GDP is 21.9% and imports of goods and services by India as percentage of GDP is 24% in the year 2023, while they were at 23.2% and 26.8% respectively in 2022.

12. Consider the following statements: [I.A.S. (Pre) 2023]

Statement-I: India accounts for 3.2% of global export of goods.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production Linked Incentive' scheme.

Correct Answer: (d) Statement-I is incorrect but Statement-II is correct
Solution:India accounts for 1.8% of global exports of goods in 2021 and also in 2022. Hence, Statement-I is incorrect. The 'Production Linked Incentive' (PLI) scheme offers companies incentives on incremental sales from products manufactured in India.

It aims to attract foreign companies to set up units in India while encouraging local companies to expand their manufacturing units, generate more employment, and reduce the country's reliance on imports. Many local companies and some foreign companies operating in India have taken advantage of India's PLI scheme. Hence, Statement-II is correct.

13. In 1950, India's share in global exports was 1.85 per cent, but today it is: [U.P.P.C.S. (Pre) 1998]

Correct Answer: (a) 0.60 per cent
Solution:In the decade of 1990s, India's share in international commodity exports was between 0.5 percent to 0.7 percent Hence, as per the question period, option (a) was the correct answer. As per the 'World Trade Statistical Review 2023 released by the WTO, India's share in world total merchandise export in 2022 is 1.8%.

According to the Economic Survey 2022-23, India's share in world total merchandise exports is at 1.8 percent in the year 2021, which was at 1.6% in 2020 and 1.7% in 2019. India's rank in world exports and imports of merchandise is 18 and 9 respectively in 2022, which was at 18 and 10 respectively in 2021.

14. What was the share of India in total world's export in the year 2013? [Chhattisgarh P.C.S. (Pre) 2014]

Correct Answer: (b) 1.7 percent
Solution:As per the question period and in the year 2018 and 2019, the share of India in world's total merchandise exports was at 1.7 percent. India's share in world's total merchandise exports was reduced to 1.6 percent in 2020 but it again improved to 1.8 percent in 2021 & 2022.

India's Trade Scenario:

  • Total Export: Reached USD 820 billion in FY 2024-25, an increase of 5.5-6% over FY 2023-24.
  • Merchandise exports are estimated at USD 395.63 billion for April-February 2025, with full-year projections around USD 438 billion.
  • Total Imports: Estimated at USD 915 billion for FY 2024-25, up 6.9% from USD 675.44 billion (merchandise) in FY 2023-24, reflecting higher commodity prices and demand.
  • Services exports recorded USD 354.90 billion for April-February 2025, with a full-year estimate of USD 382-383 billion, reflecting a robust 12% growth from USD 341.1 billion in FY 2023-24.
  • Trade Deficit: Estimated at USD 94 billion for FY 2024-25, lower than USD 238.3 billion in FY 2023-24 due to import moderation and services export growth.

15. What was India's share in World Exports by commodity divisions and groups in 2018? [B.P.S.C. (Pre) (Re.Exam) 202]

Correct Answer: (a) 1.7%
Solution:As per the question period and in the year 2018 and 2019, the share of India in world's total merchandise exports was at 1.7 percent. India's share in world's total merchandise exports was reduced to 1.6 percent in 2020 but it again improved to 1.8 percent in 2021 & 2022.

India's Trade Scenario:

  • Total Export: Reached USD 820 billion in FY 2024-25, an increase of 5.5-6% over FY 2023-24.
  • Merchandise exports are estimated at USD 395.63 billion for April-February 2025, with full-year projections around USD 438 billion.
  • Total Imports: Estimated at USD 915 billion for FY 2024-25, up 6.9% from USD 675.44 billion (merchandise) in FY 2023-24, reflecting higher commodity prices and demand.
  • Services exports recorded USD 354.90 billion for April-February 2025, with a full-year estimate of USD 382-383 billion, reflecting a robust 12% growth from USD 341.1 billion in FY 2023-24.
  • Trade Deficit: Estimated at USD 94 billion for FY 2024-25, lower than USD 238.3 billion in FY 2023-24 due to import moderation and services export growth.

16. What was the rank of India in Commercial Services Exports in the world in 2014? [Uttarakhand P.C.S. (Pre) 2016]

Correct Answer: (b) 8th
Solution:As per the Economic Survey 2015-16, India's services exports grew from US $ 16.8 billion in 2001 to US $ 155.6 billion in 2014, making the country the eighth largest services exporter in the world.

According to the Economic Survey 2022-23, the rank of India in Commercial Services Exports in the world in 2019 and 2020 was 8 and 7 respectively, with its share in world commercial services exports increasing from 3.5 percent in 2019 to 4.0 percent in 2020 and 2021.

As per the 'World Trade Statistical Review 2023' released by the WTO, India became the 7th largest exporter (with 4.4% share) of commercial services in the world in 2022, while the country is at the 9th rank (with 3.8% share) in terms of import of commercial services in 2022.

17. Which country has the largest share in international trade? [U.P.U.D.A./L.D.A. (Pre) 2013]

Correct Answer: (a) China
Solution:During the question period, United States of America had the largest share in international trade followed by China, Germany and Japan. At present, China has the largest share in international trade. As per the WTO's World Trade exports Statistical Review 2023, top 5 countries in world merchandise exports/imports and services exports/imports in 2022 are as follows:     

Top 5 in World Merchandise Trade, 2022

RankExporterShare (%)RankImporterShare (%)
1China14.41USA13.2
2USA8.32China10.6
3Germany6.63Germany6.1
4Netherlands3.94Netherlands3.5
5Japan3.05Japan3.5

Top 5 in World Service Trade, 2022 

RankExporterShare (%)RankImporterShare (%)
1USA12.81USA10.3
2UK7.02China7.1
3China6.03Germany7.0
4Germany5.84Ireland5.7
5Ireland5.05France4.8

18. Which one of the following regions has emerged as the largest International Trade Partner (Export and Import) of India in 2008-092 [U.P.P.C.S. (Mains) 2009]

Correct Answer: (c) Asia and ASEAN
Solution:As per the question period and in April-March, 2022-23 and 2023-24, Asia is the largest international trade partner of India. According to the data of Ministry of Commerce and Industry, Government of India, direction of Imports and Exports of India by main regions is as follows:
Region Share in 2022-23%

April - March (Import)%

 Share in 2022-23%

April - March (Export)%

 Share in 2023-24 (p) %

April - March (Import) %

 Share in 2023-24 (p) %

April - March (Export) %

Asia 62.74 41.57 60.92 41.65
E. Asia (Oceania)2.82 1.71 2.52 1.99
Asean 12.23 9.76 11.79 9.43
Africa6.52 11.35 5.63 10.38
America 11.29 23.40 10.31 23.15
North America 8.23 19.48 7.17 19.83
Latin America 3.06 3.93 3.14 3.32
Europe 12.71 21.80 13.87 22.62
European Union (EU)8.53 16.59 8.79 17.37

19. Which one of the following regions of the world supplies the maximum of our imported commodities (in terms of rupee value)? [L.A.S. (Pre) 1998]

Correct Answer: (c) Asia and Oceania
Solution:As per the question period and in April-March, 2022-23 and 2023-24, Asia is the largest international trade partner of India. According to the data of Ministry of Commerce and Industry, Government of India, direction of Imports and Exports of India by main regions is as follows:
Region Share in 2022-23%

April - March (Import)%

 Share in 2022-23%

April - March (Export)%

 Share in 2023-24 (p) %

April - March (Import) %

 Share in 2023-24 (p) %

April - March (Export) %

Asia 62.74 41.57 60.92 41.65
E. Asia (Oceania)2.82 1.71 2.52 1.99
Asean 12.23 9.76 11.79 9.43
Africa6.52 11.35 5.63 10.38
America 11.29 23.40 10.31 23.15
North America 8.23 19.48 7.17 19.83
Latin America 3.06 3.93 3.14 3.32
Europe 12.71 21.80 13.87 22.62
European Union (EU)8.53 16.59 8.79 17.37

20. Which one of the following regions had largest share of India's imports in 2009-107 [U.P.U.D.A./LL.D.A. (Pre) 2010]

Correct Answer: (a) Asia and ASEAN
Solution:As per the question period and in April-March, 2022-23 and 2023-24, Asia is the largest international trade partner of India. According to the data of Ministry of Commerce and Industry, Government of India, direction of Imports and Exports of India by main regions is as follows:
Region Share in 2022-23%

April - March (Import)%

 Share in 2022-23%

April - March (Export)%

 Share in 2023-24 (p) %

April - March (Import) %

 Share in 2023-24 (p) %

April - March (Export) %

Asia 62.74 41.57 60.92 41.65
E. Asia (Oceania)2.82 1.71 2.52 1.99
Asean 12.23 9.76 11.79 9.43
Africa6.52 11.35 5.63 10.38
America 11.29 23.40 10.31 23.15
North America 8.23 19.48 7.17 19.83
Latin America 3.06 3.93 3.14 3.32
Europe 12.71 21.80 13.87 22.62
European Union (EU)8.53 16.59 8.79 17.37