Question
Q74. Consider the following statements:
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. Textile and textile articles” constitute an important item of trade between India and Bangladesh.
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?
A. 1 and 2 only
B. 2 only
C. 3 only
D. 1,2 and 3
Answer :B
Detailed Explanation
Indo-Sri Lanka Trade:
The value of trade between India and Sri Lanka did not consistently increase in the last decade.
Indo-Sri Lanka trade reached its peak around 2013-14, but fluctuations have occurred since then, making the statement of consistent growth incorrect.
The 2000 India–Sri Lanka FTA boosted trade to $5.54 billion in 2023–24, with resumed ferry services reconnecting Tamil Nadu and Jaffna.
Hence, statement 1 is incorrect.
India-Bangladesh Trade (Textiles):
“Textile and textile articles” are indeed significant items in the trade between India and Bangladesh.
Cotton is one of the largest export items from India to Bangladesh, accounting for a substantial part of the trade, followed by other textile-related products.
Garment and textile products also make up a significant portion of India’s imports from Bangladesh.
Hence, statement 2 is correct.
Largest Trading Partner in South Asia:
In the last five years, Bangladesh, not Nepal, has been India’s largest trading partner in South Asia.
India’s export to Bangladesh stood at US$ 11.06 billion in FY24 and US$ 12.21 billion in FY23.
Nepal is an important trading partner, but its trade volume with India is not as large as that of Bangladesh.
Hence, statement 3 is incorrect.
Additional Information
The top four export countries of India are as follows
China- trade deficit of 51 bn USD.
The USA – trade surplus of 25 bn USD.
UAE – trade surplus of 12 bn USD.
Saudi Arabia trade deficit of 15 bn USD
