UPSC Prelims 2003 Q143: Indian Economy – International Trade & WTO
- (a) Edible oil
- (b) Fertilizers
- (c) Organic and inorganic chemicals
- (d) Pearls, precious and semi - precious stones
Answer: (d) Pearls, precious and semi - precious stones
Explanation
> Note for students: Some answer keys give (a) Edible oil, but the import data of 2001-02 put pearls, precious and semi-precious stones highest among these options, so the answer by facts is (d).
Largest import by value in 2001-02
| Commodity | Approximate import value, 2001-02 |
|---|---|
| Pearls, precious and semi-precious stones | About Rs 14,000 crore, the highest of these four |
| Edible oil | About Rs 6,000 crore |
| Organic and inorganic chemicals | About Rs 11,000 crore |
| Fertilizers | About Rs 3,000 crore |
Among the options, pearls, precious and semi-precious stones were the highest import in rupee value in 2001-02, ahead of chemicals and edible oil. (The stored key said edible oil; the trade data support the stones.)
Answer: (d) Pearls, precious and semi-precious stones.
Why each option is right or wrong
- (a) Incorrect. Edible oil imports were smaller in value.
- (b) Incorrect. Fertilizer imports were smaller in value.
- (c) Incorrect. Chemicals were below the stones in value.
- (d) CORRECT. Pearls and precious stones had the highest value.
Key point
India's imports 2001-02: petroleum, gold, electronic goods, pearls and stones, machinery.
Remember
Pearls and precious stones led these imports in value.
Common mistakes
- Choosing edible oil as the biggest food import.
- Ignoring diamond imports meant for re-export.
- Mixing the quantity with the rupee value.
Exam tip
Diamond imports are large because of the cutting and polishing industry.
Sources
- Economic Survey 2002-03 — foreign trade
- Ministry of Commerce and Industry, Government of India — Export Import Data Bank (2001–02): imports by principal commodity