India’s international exports have shown a decrease in agriculture and allied products between 2015 to 2022. Select the appropriate reason for the same from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → The decline in the export of agricultural items is largely due to tough international competition.
Option (1) The decline in the export of agricultural and manufactured goods is due to greater domestic demand for these goods. — Incorrect. The fall comes from competition abroad, not from demand at home.
Option (2) The export of agricultural goods has decreased due to lower volume of domestic production. — Incorrect. Exports of floricultural products, fresh fruits, marine products and sugar have increased, which a shortage at home would not allow.
Option (3) The decline in the export of agricultural items is largely due to tough international competition. — Correct. Other countries sell the same traditional items, such as cashew, in the world market. When they offer them on better terms, foreign buyers turn to them, so India sells less of these items abroad. That is how the share of agriculture and allied products in exports went down from 2015-16 to 2021-22: the decline in traditional items is largely due to the tough international competition.
Option (4) India finds it more profitable to export crude petroleum and allied products. — Incorrect. The rise in petroleum’s share is a change in the mix of exports, not the cause of the fall in farm exports.
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.…” |