Which of the following factors is responsible for the decline of traditional items in export in India?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Tough International competition
Option (1) Religious factors — Incorrect. Religion does not decide what foreign buyers purchase.
Option (2) Tough International competition — Correct. The share of traditional items in India’s exports has fallen largely due to tough international competition. When other countries offer the same goods, such as cashew, at a lower price or of better quality, foreign buyers turn to them; India’s orders shrink, so the export of these traditional items declines.
Option (3) Increasing Demand — Incorrect. A rising demand abroad would raise exports, not lower them, so it cannot cause a decline.
Option (4) Because of high transportation cost — Incorrect. Transport costs fall on all exports alike, so they cannot explain why the traditional items alone declined.
NCERT (2025-26): “Changing Pattern of the Composition of India’s Exports … The composition of commodities in India’s international trade has been undergoing a change over the years. In export the share of agriculture and allied products and manufactured goods have decreased, whereas, share from crude petroleum and products and other commodities have increased. The share of ore and minerals have largely remained constant over the years from 2015-16 to 2021-22. The decline in traditional items is largely due to the tough international competition. Amongst the agriculture products, there is a decline in the export of traditional item, such as cashew, etc., though an increase has been registered in floricultural products, fresh fruits, marine products and sugar, etc.…” |