With reference to India rsquo s export growth rate consider the following statements India rsquo s e...........

Economic Affairs Foreign Trade - Trends and Policy

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With reference to India’s export growth rate, consider the following statements:

India’s export growth rate for countries with which it has free trade agreements has been consistently increasing year on year for the last 10 years.
India’s exports growth rate for countries with which it does not have free trade agreements has been stagnant over the last 10 years.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

None of the above statements is true. Exports to FTA countries has not outperformed overall export growth, in fact, export to FTA countries parallels the trend growth as with exports to other countries. Since 2006, India’s exports to regional FTA partners increased by 13% y-o-y. The trend to non-partner countries was no different with exports increasing at the same pace (chart above). Both rates have not been stagnant over the last decade, and both have fluctuated heavily.