Which of the following factors can lead to fall in Indian exports 1 Global slowdown 2 Low global com...........

Economic Affairs Balance of Payments

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Which of the following factors can lead to fall in Indian exports?

1. Global slowdown

2. Low global commodity prices

3. Deprecation of currency

Select the correct answer using the code given below.

1 and 2 only

2 only

1 and 3 only

1, 2 and 3

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Explanation:

o Statement 1 is correct as Global slowdown would result into weakening of global demand of Indian
goods and thus result into lower value of exports.
o Statement 2 is correct as Low global commodity prices means the prices that traders would get in
international market would be low and hence it will discourage exports .
o Statement 3 is not correct as deprecation in currency would make exports more competitive and
encourage rise in value of exports.