Identify the main reasons for rise in India's overseas trade?
(A) Momentum picked up by the manufacturing sectors.
(B) Liberal Policies of Government.
(C) Strict Policies of Government.
(D) Diversification of Markets.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
(A) Momentum picked up by the manufacturing sectors. — Correct. Factories produce more goods, so India has more to sell abroad.
(B) Liberal Policies of Government. — Correct. Liberal policies removed many limits on trade with other countries.
(C) Strict Policies of Government. — Incorrect. Trade rose because of liberal policies, the opposite of strict ones. Strict rules would slow trade down.
(D) Diversification of Markets. — Correct. Selling to many more countries means more trade partners and more trade.
NCERT (2026-27): “Let us examine the changing pattern of India’s International trade. In 1950-51, India’s external trade was worth Rs.1,214 crore, which rose to Rs. 77,19,796 crore in 2020-21. … There are numerous reasons for this sharp rise in overseas trade, such as the momentum picked up by the manufacturing sectors, the liberal policies of the government and the diversification of markets.” |