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International Trade (Part – I)

📆 October 19, 2024

Total Questions: 50

21. More than 50 percent of India's import comes from: [U.P.P.C.S. (Mains) 2006]

Correct Answer: (b) Asian countries
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

22. With which of the following groups of countries India has the largest import trade? [U.P.U.D.A./L.D.A. (Pre) 2001]

Correct Answer: (b) OPEC
Solution:As per the question period, India had maximum import trade with Organization of the Petroleum Exporting Countries (OPEC). According to the Ministry of Commerce and Industry, Government of India, India has 60.92 percent import share with Asia and out of which 25.07 percent share is held by North East Asia in 2023-24 (P).

What is OPEC

  • It is a permanent intergovernmental organization of oil-exporting countries.
  • It was established in 1960 by the five founding members Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
  • Currently, it has 12 members, including Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates.
  • Angola withdrew its membership effective 1 January 2024.
  • Headquarters: Vienna, Austria.

23. In 2011 which two countries accounted for the largest share percent in India's total trade with rest of the world? [U.P.P.C.S. (Mains) 2013]

Correct Answer: (a) China and UAE
Solution:According to the data of the year 2010-11 and 2011-12, China and UAE had jointly the largest share in foreign trade of India. As per the data of 2021-22 and 2022-23, USA was the largest trading partner of India followed by China and UAE, while as per the data of 2023-24 (released in May, 2024) India's largest trading partners are: 1. China, 2. USA, 3. UAE.

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.

24. Which of the following countries is India's largest trading partner? [U.P.P.C.S. (Pre) 2007, Uttarakhand P.C.S. (Pre) 2016]

Correct Answer: (b) USA
Solution:Major trading partners of India in the year 2006-07 were as follows: USA (9.8%), China (8.3%), UAE (6.6%) and Saudi Arabia (5.1%). As per the data of 2021-22 and 2022-23, India's largest trading (Imports plus Exports) partner was USA followed by China and UAE, while as per the data of 2023-24 India's largest trading partners are: 1. China, 2. USA, 3. UAE

Latest Trends of India's Foreign Trade:

  • As per the data from the economic think tank GTRI, China has overtaken the US as India's largest trading partner, with a total two-way commerce of $118.4 billion, in the FY 2023-24.
  • India's exports to China rose by 8.7% to $16.67 billion, while imports increased by 3.24% to $101.7 billion.
  • On the other hand, exports to the US dipped slightly to $77.5 billion, and imports decreased by about 20% to $40.8 billion (the two-way commerce stood at $118.3 billion).
  • The UAE with USD 83.6 billion, was the third largest trading partner of India. It was followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion), and Singapore ($35.6 billion).

25. Which of the following countries is India's top trading partner in 2019-2020? [B.P.S.C. (Pre) 2020]

Correct Answer: (a) USA
Solution:As per the data available on the website of Ministry of Commerce and Industry India's top trading partner in 2019- 20 was USA, while China and UAE were at 2nd and 3rd place, respectively. In year 2021-22 and 2022-23, India's top 3 trading partners were: 1. USA, 2. China, 3. UAE, while in 2023-24 China has taken top spot as India's largest trading partner. USA and UAE are at 2nd and 3rd place, respectively.

Latest Trends of India's Foreign Trade:

  • As per the data from the economic think tank GTRI, China has overtaken the US as India's largest trading partner, with a total two-way commerce of $118.4 billion, in the FY 2023-24.
  • India's exports to China rose by 8.7% to $16.67 billion, while imports increased by 3.24% to $101.7 billion.
  • On the other hand, exports to the US dipped slightly to $77.5 billion, and imports decreased by about 20% to $40.8 billion (the two-way commerce stood at $118.3 billion).
  • The UAE with USD 83.6 billion, was the third largest trading partner of India. It was followed by Russia ($65.7 billion), Saudi Arabia ($43.4 billion), and Singapore ($35.6 billion).

26. India has the maximum volume of foreign trade with: [I.A.S. (Pre) 2002]

Correct Answer: (e) China
Solution:As per the data available on the website of Ministry of Commerce and Industry India's top trading partner in 2019- 20 was USA, while China and UAE were at 2nd and 3rd place, respectively. In year 2021-22 and 2022-23, India's top 3 trading partners were: 1. USA, 2. China, 3. UAE, while in 2023-24 China has taken top spot as India's largest trading partner. USA and UAE are at 2nd and 3rd place, respectively.

Exports (merchandise):

  • The top exports of India are Refined Petroleum ($86.2B), Diamonds ($25.9B), Packaged Medicaments ($19.5B), Jewellery ($12.6B), and Rice ($11.18).
  • It exports mostly to the United States ($82.9B), United Arab Emirates ($31.6B), Netherlands ($17.6B), China ($15.3B), and Bangladesh ($13.8B).
  • In 2022, India was the world's biggest exporter of Diamonds ($25.9B), Rice ($11.1B), etc.

Imports (merchandise):

  • The top imports of India are Crude Petroleum ($170B), Coal Briquettes ($58.7B), Gold ($35.88), Petroleum Gas ($32B), and Diamonds ($26.1B).
  • It imports mostly from China ($1108), UAE ($518) and the US ($48.58), Saudi Arabia ($46.2B), and Russia ($40.4B).
  • In 2022, India was the world's biggest importer of Coal Briquettes ($58.78), Diamonds ($26.1B), Palm Oil ($11.18), Mixed Mineral or Chemical Fertilizers ($7.888), and Nitrogenous Fertilizers ($7.378).

27. At present, which country of the following is the largest partner of India in total international trade? [Chhattisgarh P.C.S (Pre) 2015]

Correct Answer: (d) China
Solution:As per the data available on the website of Ministry of Commerce and Industry India's top trading partner in 2019- 20 was USA, while China and UAE were at 2nd and 3rd place, respectively. In year 2021-22 and 2022-23, India's top 3 trading partners were: 1. USA, 2. China, 3. UAE, while in 2023-24 China has taken top spot as India's largest trading partner. USA and UAE are at 2nd and 3rd place, respectively.
  • In 2024-25, India-China bilateral trade rose to $127.7 billion, up from $118.4 billion in 2023-24.
  • China continues as India's second-largest trading partner, after the US.
    India's exports to China fell by 14.5%, dropping to $14.25 billion (from $16.66 billion).
  • Imports from China surged by 11.52% to $113.45 billion (from $101.73 billion).
  • This caused India's trade deficit with China to widen by 17%, reaching $99.2 billion, up from $85.07 billion in the previous year.

28. Among the following countries India's trade balances surplus is maximum with which country in 2019-20? [U.P.P.C.S. (Pre) 2021]

Correct Answer: (a) USA
Solution:India's trade balance surplus is maximum with the USA in 2019-20 as well as in 2020-21, 2021-22 and 2022-23. The USA is one of the few countries with whom India has a trade surplus. India has a trade surplus of 36.74 US billion dollar with the United States,
  • India's exports to the US rose by 11.6%, reaching $86.51 billion in 2024-25 (up from $77.52 billion in FY24).
  • Imports from the US increased by 7.44% to $45.33 billion (up from $42.2 billion).
  • Resulting trade surplus for India stood at $41.18 billion, an increase from $35.32 billion in the previous year.

Top Indian Exports to the US in 2024-25

  • Drug formulations & biologicals - $8.1 billion
  • Telecom instruments - $6.5 billion
  • Precious & semi-precious stones - $5.3 billion
  • Petroleum products - $4.1 billion
  • Gold & precious metal jewellery - $3.2 billion
  • Readymade garments (mostly cotton) - $2.8 billion
  • Iron & steel products - $2.7 billion

Major US Exports to India in 2024-25

  • Crude oil-$4.5 billion
  • Petroleum products - $3.6 billion
  • Coal & coke - $3.4 billion
  • Cut & polished diamonds - $2.6 billion
  • Electric machinery - $1.4 billion
  • Aircraft, spacecraft & parts - $1.3 billion
  • Gold-$1.3 billion.

29. With which of the following nations, India's trade on current account is more in the foreign trade balance? [U.P.P.C.S. (Spl.) (Mains) 2004]

Correct Answer: (d) USA
Solution:The trade on current account includes exports and imports in goods and trade in services. As per the question period as well as at present, India's trade on current account is largest with the USA.
  • India's exports to the US rose by 11.6%, reaching $86.51 billion in 2024-25 (up from $77.52 billion in FY24).
  • Imports from the US increased by 7.44% to $45.33 billion (up from $42.2 billion).
  • Resulting trade surplus for India stood at $41.18 billion, an increase from $35.32 billion in the previous year.

Top Indian Exports to the US in 2024-25

  • Drug formulations & biologicals - $8.1 billion
  • Telecom instruments - $6.5 billion
  • Precious & semi-precious stones - $5.3 billion
  • Petroleum products - $4.1 billion
  • Gold & precious metal jewellery - $3.2 billion
  • Readymade garments (mostly cotton) - $2.8 billion
  • Iron & steel products - $2.7 billion

Major US Exports to India in 2024-25

  • Crude oil-$4.5 billion
  • Petroleum products - $3.6 billion
  • Coal & coke - $3.4 billion
  • Cut & polished diamonds - $2.6 billion
  • Electric machinery - $1.4 billion
  • Aircraft, spacecraft & parts - $1.3 billion
  • Gold-$1.3 billion.

30. The largest part of India's import (in value) comes from: [U.P.P.C.S. (Mains) 2010, U.P.U.D.A../L.D.A. (Pre) 2010]

Correct Answer: (a) China
Solution:As per the question period as well as at present, China has the largest share in total imports of India. According to the Ministry of Commerce and Industry, Government of India, the top 3 sources of India's imports in terms of value and their percentage share in India's total merchandise imports are as follows:
S.N.Country (Source of Import)2022-23

Value (US $ million)

2023-24 (P)

Value (US $ million)

2023-24 (P)

Share (%)

 

1China98505.77101745.5415.06
2Russia46212.7161431.249.10
3UAE53232.4248018.107.11
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