Which of the following is a reason for the sharp rise in overseas trade in India?

The liberal policies of the government.

The correct answer is Option 1: The liberal policies of the government.

India’s overseas trade increased sharply after the adoption of liberalisation policies. These policies reduced trade restrictions, encouraged imports and exports, promoted foreign investment, and integrated the Indian economy with the global market.

Option 1: The momentum picked up by the agriculture sector. This statement is Incorrect as a primary driver. While agriculture is a vital part of the economy, the sharp rise in overseas trade (especially in a modern context) is primarily fueled by industrial manufacturing, service exports, and global supply chain integration rather than agricultural growth.

Option 3: The sameness of markets. This statement is Incorrect. Global trade thrives on the differences in markets—comparative advantages, specialized labor, and unique resource availability—rather than their sameness.