UPSC Prelims 2003 Q59: Indian Economy – International Trade & WTO
Consider the following statements
1. India’s import of crude and petroleum product during the year 2001 - 02 accounted for about
27% of India’s total imports.
2. During the year 2001 - 02, India’s exports had increased by 10% as compared to the previous
year
Which of these statements is/are correct?
- (a) Only 1
- (b) Only 2
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (a) Only 1
Explanation
India's imports and exports in 2001-02
| Statement | Verdict |
|---|---|
| 1. Crude and petroleum products were about 27% of total imports | True as accepted for the year |
| 2. Exports increased by 10% over the previous year | False: exports fell by about 1.6% in 2001-02 |
Only statement 1 is correct.
Answer: (a) Only 1.
Why each option is right or wrong
- (a) CORRECT. Only statement 1 is correct.
- (b) Incorrect. Exports declined in 2001-02.
- (c) Incorrect. Statement 2 is false.
- (d) Incorrect. Statement 1 is accepted as correct.
Key point
2001-02: exports about $44 bn (down 1.6%), imports about $51 bn; POL imports about a quarter.
Remember
India's exports declined in 2001-02.
Common mistakes
- Assuming exports grew in the global slowdown year.
- Mixing 2000-01 growth (about 21%) with 2001-02.
- Forgetting the share of oil in imports.
Exam tip
2001-02 was a year of falling exports after the 2000-01 surge.
Sources
- Ministry of Finance, Government of India — Economic Survey 2002–03 (External Sector)
- Ministry of Commerce and Industry, Government of India — Export Import Data Bank (2001–02)