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?

1 and 2 only

2 only

3 only

1, 2 and 3

APEDIA

UPSC Prelims

2020 • 04 Oct, 2020 • Paper-1

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?

Correct Answer

2 only

Trade Fluctuation Analysis: Bilateral trade volumes between India and Sri Lanka have experienced periods of volatility and decline due to various global and reg......

💡 Analysis & Explanation

Trade Fluctuation Analysis ▼

Bilateral trade volumes between India and Sri Lanka have experienced periods of volatility and decline due to various global and regional economic slowdowns. The assertion that it has 'consistently increased' without any dip is statistically false. Statement 1 is incorrect.

Commodity Exchange Reality ▼

Bangladesh possesses a globally dominant garment manufacturing sector. Consequently, the export of raw cotton and yarn from India, and the import of finished apparel from Bangladesh, form a massive, fundamental pillar of their bilateral trade. Statement 2 is entirely correct.

Regional Partnership Ranking ▼

While Nepal is a significant partner, statistical trade data consistently positions Bangladesh as India's single largest trading partner within the South Asian region, not Nepal. Statement 3 is incorrect.

Conclusion ▼

Only the textile trade dynamic with Bangladesh is accurately stated.

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