Crack Prelims
← External sector & trade · Trade & WTO
Prelims 2020 · Q64 · Trade & WTO

Consider the following statements :

  1. 1.The value of Indo-Sri Lanka trade has consistently increased in the last decade.
  2. 2."Textile and textile articles" constitute an important item of trade between India and Bangladesh.
  3. 3.In the last five years, Nepal has been the largest trading partner of India in South Asia.

Which of the statements given above is/are correct ?

Show answer

Answer: B. Statement 1 is wrong: India-Sri Lanka trade has gone up and down over the decade, not risen steadily. Statement 2 is correct: textiles and textile articles are a major item in India-Bangladesh trade. Statement 3 is wrong: Bangladesh, not Nepal, has been India's largest trading partner in South Asia in recent years. So only 2.

Watch for: 'Consistently' is a strong word; trade figures rarely rise every single year.

Why the other options are wrong
  • A. Wrong because Indo-Sri Lanka trade has not risen consistently.
  • C. Wrong because Bangladesh, not Nepal, is the largest partner.
  • D. Wrong because statements 1 and 3 are false.

Source to check: Ministry of Commerce and Industry, Export Import Data Bank (tradestat.commerce.gov.in)

Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.