UPSC Prelims 2002 Q23: Indian Economy – International Trade & WTO
India has the maximum volume of foreign trade with
- (a) USA
- (b) Japan
- (c) Germany
- (d) UAE
Answer: (a) USA
Explanation
India's largest trading partner around 2001
| Country | Position in India's trade |
|---|---|
| USA | Largest trading partner (exports and total trade around 2001) |
| Japan | Smaller share, a major source of aid and investment |
| Germany | Important European partner, but below the USA |
| UAE | Rising partner; became a top partner only later |
Around 2001 the United States took the largest share of India's exports and was India's biggest trading partner overall. Japan, Germany and the UAE were smaller. (China and the UAE rank higher in later decades.)
Answer: (a) USA.
Why each option is right or wrong
- (a) CORRECT. The USA had the largest volume of India's foreign trade.
- (b) Incorrect. Japan's trade volume was smaller.
- (c) Incorrect. Germany's trade volume was smaller.
- (d) Incorrect. The UAE's trade volume was smaller in that period.
Key point
Direction of trade changes over time: the USA led in the 2000s, China and the UAE later.
Remember
In 2001 the USA was India's largest trade partner.
Common mistakes
- Choosing UAE from its later rise.
- Applying present-day trade data to a 2001 question.
- Thinking Germany leads because it is Europe's largest economy.
Exam tip
Anchor the answer to the year in the paper, not the present.
Sources
- Economic Survey 2001-02 — Direction of trade
- Ministry of Commerce — trade statistics