Question 24 from UPSC CSE 2020 - CURRENT AFFAIRS

Question

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?

Accepted Answer

Correct Option: B. 2 only

Strategy: First, statement 1 requires knowledge of trade trends--'consistently increased' is absolute and can be disproved even with short-term slumps, so one must be cautious. Statement 2 cues towards factual recall--India-Bangladesh trade is heavily textile-oriented. Statement 3 needs recall of regional rankings--Bangladesh, not Nepal, is India's top South Asian trade partner. Eliminating statements with clear factual errors leaves only statement 2 as correct.

Key Info: **Indo-Sri Lanka Trade**
Bilateral trade between India and Sri Lanka has fluctuated over the last decade. While overall trade grew significantly since the 2000s, the decade leading to the question saw periods of both growth and decline, with notable slumps in 2012-13 and 2016-17. Therefore, the trade value has not 'consistently' increased every year.

**India-Bangladesh Trade**
Bangladesh is the largest trading partner of India in South Asia. Key export items from India include cotton, machinery, vehicles, and pharmaceuticals. Among these, 'textile and textile articles' are highly significant. India is a major exporter of cotton yarn and woven fabric to Bangladesh, supporting Bangladesh's garment industry, while importing textile-related items in return, making textiles a substantial part of bilateral trade.

**India-Nepal Trade**
Nepal, while sharing significant trade volume with India, is not India's largest trade partner in South Asia. Bangladesh holds that position by a wide margin. Nepal relies heavily on India for imports, but bilateral trade volumes are significantly lower than those with Bangladesh.

**Broader Context**
India's trade in South Asia is characterized by substantial surpluses with almost all neighboring countries, and textiles play a crucial role in intra-regional commerce, especially with Bangladesh due to its prominence in the global garment sector.

Answer

Option A: 1 and 2 only

Answer

Option C: 3 only

Answer

Option D: 1, 2, and 3