CARE 14th May 2024 Current Affairs

Current Affairs Reverse Engineering – CARE (14-05-2024)

News at a Glance
Ecology and Environment: 19th United Nations Forum for Forests (UNFF) in news
EU countries approve law to slash trucks’ CO2 emissions
International: India, Iran sign 10-year contract for Chabahar port operation
GANHRI defers NHRC-India accreditation for second year in a row
Economy: India’s top trade partner: China regains spot on higher imports

19th United Nations Forum for Forests (UNFF) in news

Source: Down to Earth

https://www.downtoearth.org.in/news/forests/unff-countries-adopt-declaration-on-forest-protection-emphasise-on-adopting-technology-for-monitoring-96096  

UPSC Syllabus Relevance: GS 3 International conventions, Ecology and Environment

Context: The resolution for strengthening the International Arrangement on Forests

Why in News 

  • 19th United Nations Forum for Forests (UNFF) on May 9, 2024 discussed the draft on the significance of forests in fighting climate change, biodiversity loss and land degradation, but failed to finalise the text.

Key Highlights

  • The recent report ‘International Forest Governance for the Future: From Criticism To Alternatives’ released on May 9 showed that between 2010 and 2023, the rate of deforestation has reduced from 13 million hectares to 10 million hectares per year.
  • The declaration, once adopted, will enshrine specific future actions to be taken by UNFF and its stakeholders towards protection and preservation of forests of the world.
  • Delegates acknowledged the importance of forests in achieving sustainable development and the objectives outlined in the sustainable development goals, all within the framework of the 2030 agenda. 
  • Countries also showed commitment to the first of the six Global Forest Goals adopted in the 2017 UN Strategic Plan for Forests, which highlighted the need to increase forest cover and focused on stopping and reversing the impacts of land degradation.
  • Furthermore, countries debated the inclusion of early-warning systems and certain management practices, such as controlled burning. 
  • There was strong support for including references to different national circumstances and the specific challenges faced by developing countries.

India

  • India highlighted its “significant advancements” in conservation and sustainable forest management at the 19th edition of the United Nations Forum on Forests (UNFF 19) in New York, noting a consistent increase in forest cover over the past 15 years.
  • At the meeting, the Indian delegation shared India’s high priority for biodiversity and wildlife conservation. 
  • It also highlighted the significant expansion of India’s network of protected regions, which now encompasses over a thousand wildlife sanctuaries, national parks, reserves for tigers, biosphere reserves, and various other habitats dedicated to wildlife conservation.
  • India also introduced the green credit programme, designed to incentivise entities to plant trees and restore degraded forest lands. This programme aims to strengthen climate action initiatives further.
  • In October 2023, India hosted the country-led initiative under UNFF in Dehradun, which was attended by representatives from 40 countries and 20 international organisations. The forum discussed forest fire management and forest certification. 
  • At the New York meeting, India also presented the recommendations from this initiative.

UNFF

  • The UNFF is a body under the UN Economic and Social Council (ECOSOC) and aims to support the goals of the International Arrangement on Forests (IAF) and advance other international forest-related instruments, processes, commitments, and objectives.
  • On 27 April 2017, the UN General Assembly adopted the first ever UN Strategic Plan for Forests 2017-2030. 
  • At the heart of the Strategic Plan are six Global Forest Goals and 26 associated targets to be achieved by 2030, which are voluntary and universal. 
  • In October 2000, the Economic and Social Council of the United Nations (ECOSOC), in its Resolution 2000/35 established the United Nations Forum on Forests (UNFF), a subsidiary body with the main objective to promote “… the management, conservation and sustainable development of all types of forests and to strengthen long-term political commitment to this end…” based on the Rio Declaration, the Forest Principles, Chapter 11 of Agenda 21 and the outcome of the IPF/IFF Processes and other key milestones of international forest policy.
  • The Forum has universal membership, and is composed of all Member States of the United Nations and specialized agencies.
CARE MCQ UPSC PYQ
Q1. Consider the following statements with regards to United Nations Forum on Forests (UNFF 19):

  1. 19th edition of the United Nations Forum on Forests (UNFF 19) was held in New Delhi.
  2. UNFF recently released the report ‘International Forest Governance for the Future: From Criticism To Alternatives’

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only 
  3. Both 1 and 2
  4. Neither 1 nor 2
Q. “Momentum for Change: Climate Neutral Now” is an initiative launched by (UPSC Prelims 2018)

(A) The Intergovernmental Panel on climate change

(B) The UNEP Secretariat

(C) The UNFCCC Secretariat

(D) The World Meteorological Organization

Ans: (C) 

Answer 1– B

Explanation – 

  • The 19th edition of the United Nations Forum on Forests (UNFF 19) was held at the UN Headquarters in New York City from May 6–10, 2024. The thematic priorities for UNFF 19 are to enhance the economic, social, and environmental benefits of forests. Statement 1 is incorrect.
  • The United Nations Forum on Forests (UNFF) released the report International Forest Governance for the Future: From Criticism to Alternatives on May 9, 2024. The report analyzes the development of international forest governance since 2010 and shows that deforestation has decreased from 13 million hectares per year to 10 million hectares per year between 2010 and 2023. The report also highlights that the concept of centralized International Forest Governance (IFG) has shifted towards a more pluralistic understanding
  • Hence, Statement 2 is correct. Therefore, option B is the correct answer. 

EU countries approve law to slash trucks’ CO2 emissions

Source: The Hindu 

https://www.deccanherald.com/world/eu-countries-approve-law-to-slash-trucks-co2-emissions-3020130  

UPSC Relevance: GS 2- European Union, GS 3- Green House Emissions 

Context: Most trucks on Europe’s roads currently run on diesel, which produces greenhouse gas emissions and air pollutants linked to lung cancer and respiratory diseases. 

Why in News 

  • European Union countries gave their final approval to a law to cut carbon dioxide emissions from trucks, which will require most new heavy-duty vehicles sold in the EU from 2040 to be emissions-free.

Key Highlights

  • The law will enforce a 90 per cent cut in CO2 emissions from new heavy-duty vehicles by 2040.
  • That means manufacturers will have to sell a large share of fully CO2-free trucks – including electric vehicles and those running on hydrogen fuel – to offset any remaining sales of new CO2-emitting vehicles in 2040.
  • Most trucks on Europe’s roads currently run on diesel, which produces greenhouse gas emissions and air pollutants linked to lung cancer and respiratory diseases. Heavy-duty vehicles produce a quarter of Europe’s road transport emissions.
  • Truck manufacturers will also have to reduce the CO2 emissions of their fleets by 45 per cent by 2030 – replacing an existing 30 per cent target – and 65 per cent by 2035.
  • From 2030, 90 per cent of new urban buses sold in the EU will be required to have zero emissions, rising to 100 per cent in 2035. 
  • European autos group ACEA has described the EU policy as the world’s most ambitious, and said the targets will only be met if governments match them with a rapid roll-out of 50,000 truck-suitable public electric charging points by 2030.

Stands of various countries

  • The EU’s truck CO2 policy has now won approval from EU countries and the EU Parliament, meaning it can pass into law. 
  • That is despite recent complaints from Germany and centre-right EU lawmakers, who had wanted the policy to allow more combustion engine trucks to be sold beyond 2040 if they ran on CO2-neutral fuels. 
  • In vote, only Italy, Poland and Slovakia opposed the policy, while the Czech Republic abstained. 
  • To win Germany’s backing, EU countries last month added a preamble to the law which said the European Commission would consider developing rules in future to count trucks running on CO2 neutral fuels towards the targets

About EU

  • The European Union (EU) is a supranational political and economic union of 27 member states that are located primarily in Europe.
  • The EU was established, along with its citizenship, when the Maastricht Treaty came into force in 1993, and was incorporated as an international legal juridical person upon entry into force of the Treaty of Lisbon in 2009.
  • In 2012, the EU was awarded the Nobel Peace Prize. 
  • The United Kingdom became the only member state to leave the EU, in 2020.

Climate Action by EU

  • The EU is a climate leader: guided by science, it has stepped up its domestic commitments, adopting the objective of climate-neutrality by 2050, and enhancing its short-term GHG emission reduction target, and thus the EU’s Nationally Determined Contribution (NDC), to at least 55% by 2030 compared to 1990.
  • EU climate and energy diplomacy is a core component of EU’s foreign policy.
CARE MCQ UPSC PYQ
Q2. Which of the following statements are correct with regards to European Union’s recent law on trucks?

  1.    European Union countries gave their final approval to a law to cut carbon dioxide emissions from trucks   
  2.    Truck manufacturers will have to reduce the CO2 emissions of their fleets by 100 per cent by 2030.
  3. The law will enforce a 90 per cent cut in CO2 emissions from new heavy-duty vehicles by 2040.

Correct code:

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1,2 and 3 
Q. In the context of mitigating the impending global warming due to anthropogenic emissions of carbon dioxide, which of the following can be the potential sites for carbon sequestration? (UPSC Prelims 2017)

    1. Abandoned and uneconomic coal seams
    2. Depleted oil and gas reservoirs
  • Subterranean deep saline formalities

Select the correct answer using the codes given below:

  1. 1 and 2 only
  2. 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer: (D) 

Answer 2– A

Explanation – 

  • European Union countries gave their final approval to a law to cut carbon dioxide emissions from trucks, which will require most new heavy-duty vehicles sold in the EU from 2040 to be emissions-free. So, statement 1 is correct. 
  • The law will enforce a 90 per cent cut in CO2 emissions from new heavy-duty vehicles by 2040. 
  • That means manufacturers will have to sell a large share of fully CO2-free trucks – including electric vehicles and those running on hydrogen fuel – to offset any remaining sales of new CO2-emitting vehicles in 2040. So, statement 2 is correct. 
  • Most trucks on Europe’s roads currently run on diesel. Truck manufacturers will also have to reduce the CO2 emissions of their fleets by 45 per cent by 2030 – replacing an existing 30 per cent target – and 65 per cent by 2035. So, statement 3 is incorrect. 
  • Therefore, option A is the correct answer. 

India, Iran sign 10-year contract for Chabahar port operation

Source: The Hindu

https://www.thehindu.com/news/national/india-iran-sign-long-term-bilateral-contract-on-chabahar-port-operation/article68171624.ece  

UPSC Relevance: GS 2- India-Iran Relations

Context: The long-term agreement was signed between Indian Ports Global Ltd. (IPGL) and Port and Maritime Organisation (PMO) of Iran, enabling operation of the Shahid-Behesti terminal.

Why in News

  • Eight years after concluding the general framework of cooperation on the Chabahar port in Iran, India and Iran signed a 10-year contract for its operation.

Key Highlights

  •  India has inked a 10-year agreement to manage the strategically located Iranian port of Chabahar, aimed at facilitating expanded trade with Central Asia. 
  • The Chabahar port, situated on the Gulf of Oman and initially proposed for development by New Delhi in 2003, will serve as a crucial gateway for Indian goods to access landlocked Afghanistan and Central Asia. 
  • This will be achieved through the implementation of the International North-South Transport Corridor, a road and rail project, thus bypassing Pakistan. 
  • The development of Chabahar port by India is widely seen as India’s counter to Pakistan’s Gwadar port and China’s Belt and Road Initiative. 

Agreement

  • The long-term agreement was signed between Indian Ports Global Ltd. (IPGL) and Port and Maritime Organisation (PMO) of Iran, enabling operation of the Shahid-Behesti terminal. 
  • Subsequently, IPGL will invest approximately $120 million in equipping the port. 
  • India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.
  • The agreement was signed in the presence of Ports, Shipping, and Waterways Minister Sarbananda Sonowal and Mehrdad Bazrpash, Minister of Roads and Urban Development of Iran.
  • A memorandum of understanding for the development of the Chabahar port by India was signed in May 2015. The contract was executed on May 23, 2016 during the visit of Prime Minister Narendra Modi to Iran.

Strategic significance

  • Chabahar is a deep water port located in the Sistan-Baluchistan province of Iran. 
  • During the visit of Mr. Modi to Iran in May 2016, a trilateral agreement to establish the International Transport and Transit Corridor (Chabahar Agreement) was signed by India, Iran, and Afghanistan. 
  • India is participating in the development of the first phase of the Shahid Behesti terminal of the Chabahar port. 
  • India has so far supplied six mobile harbour cranes — two with a lifting capacity of 140 tonnes each and four with a capacity of 100 tonnes each — and other equipment worth $25 million.
  • India will use the port for humanitarian aid shipments, reaffirming its commitment to support regional development beyond commercial interests, showcasing its commitment to fostering goodwill and stability in the region
  • Chabahar serve as a vital trade artery connecting India with Afghanistan and Central Asian Countries.

Indian Ports Global Ltd. (IPGL)

  • IPGL, through its wholly owned subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), took over the operations of the Chabahar port with effect from December 24, 2018. 
  • Since then, it has handled more than 90,000 twenty-foot equivalent units (TEUs) of container traffic and more than 8.4 MMT of bulk and general cargo.

US reaction

  • Any country having business dealings with Iran runs the risk of sanctions, the United States has said, noting that it is aware that Iran and India have signed a deal concerning the Chabahar port.
  • In April this year, the US imposed sanctions on suppliers to Pakistan’s ballistic missile programme, including three companies from China.
  • A couple of days later, the US slapped sanctions on over a dozen companies, individuals and vessels, including three from India, for facilitating illicit trade and UAV transfers on behalf of the Iranian military.
CARE MCQ UPSC PYQ
Q3. Consider the following pairs:

        (Port)                 :      (Country)

    1. Chabahar Port  :      Iran
    2. Busan                 :      Russia
    3. Rotterdam         :      Netherlands
    4. Hamburg           :       France

Which of the pairs given above is/are correct?

  1. 1  and 2 only
  2. 1 and 3 only
  3. 2, 3 and 4 only
  4. All 
Q. What is the importance of developing Chabahar Port by India? (UPSC Prelims 2017)

  1. India’s trade with African countries will enormously increase.
  2. India’s relations with oil producing Arab countries will be strengthened.
  3. India will not depend on Pakistan for access to Afghanistan and Central Asia.
  4. Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India

Answer: (C)

 

Answer 3 B

Explanation

    • Chabahar is a deep-water port located in the Sistan-Baluchistan province of Iran. So, pair 1 is correct.
  • The Port of Busan is the largest port in South Korea, located in the city of Busan, South Korea. So, pair 2 is incorrect.
  • Hamburg, a major port city in northern Germany, is connected to the North Sea by the Elbe River. So, pair 4 is incorrect.
  • Rotterdam is the second largest city in the Netherlands and home to Europe’s largest port. So, pair 3 is correct.
  • Therefore, option B is the correct answer.

GANHRI defers NHRC-India accreditation for second year in a row

Source: The   Hindu

https://www.thehindu.com/news/national/un-linked-body-defers-nhrc-india-accreditation-for-second-year-in-a-row/article68171138.ece  

UPSC Syllabus Relevance: GS 2- Statutory Body, International Organisations

Context: The NHRC was set up under the Protection of Human Rights Act, passed by Parliament in 1993.

Why in News 

  • United Nations-linked Global Alliance of National Human Rights Institutions (GANHRI) deferred the accreditation of the National Human Rights Commission-India (NHRC) for the second year in a row. 

Key Findings

  • In a setback for India’s human rights record, the Geneva-based, United Nations-linked Global Alliance of National Human Rights Institutions (GANHRI) deferred the accreditation of the National Human Rights Commission-India (NHRC) for the second year in a row. 
  • The decision, which could now affect India’s ability to vote at the Human Rights Council and some UNGA bodies, was taken during the meeting of the Sub Committee on Accreditation (SCA) on May 1, that included representatives from New Zealand, South Africa, Honduras and Greece.
  • While the committee’s latest report is still awaited, its previous report had cited a number of reasons for recommending the deferral, including the lack of transparency in appointing members to the NHRC, the appointment of police officers to oversee human rights investigations, and the lack of gender and minority representation on the member panel.
  • The accreditation deferral decision has been conveyed to the NHRC 
  • The NHRC’s  “A-status” has only been deferred once before, in 2016, but it was restored in 2017. 
  • This is the first time India’s status has been suspended for two years in a row, in 2023 and in 2024. 

Rating and Status –

  • A status – Granted to NHRIs that are in full compliance with the Paris Principles
  • They are entitled to vote or hold office in the GANHRI or its regional groups
  • B status – Given to NHRIs that partially comply with the Paris Principles.
  • Institutions with B status can participate in GANHRI meetings but are unable to vote or hold governance positions

NHRC

  • The NHRC was set up under the Protection of Human Rights Act, passed by Parliament in 1993. 
  • It has been accredited as an ‘A’ Status NHRI since the beginning of the accreditation process for NHRIs in 1999, which it retained in 2006, 2011 and in 2017 also after the deferment.
  • The ‘A’ status was deferred this time after civil society organisations and human rights activists wrote to the global body, expressing concerns about India’s record. 

Issues

  • According to six-point submission by the SCA in March 2023, the NHRC has failed to create conditions required to be “able to operate independent of government interference”. 
  • In the submission, the committee had slammed India for the involvement of police officers in its investigative process, calling it a “conflict of interest”.  
  • The report had also cited lack of diversity in staff and leadership and insufficient action to protect marginalised groups, as reasons for the deferment of the accreditation.
  • The GANHRI also cited the “lack of pluralism” in the composition of the NHRC which has just one woman in its top body right now, Vijaya Bharathi Sayani, apart from its “ex-officio” chief that is the National Commission for Women. 
  • GANHRI had pointed out that the composition of the committee should reflect the “diversity of the society” it operated in, indicating the lack of any member representing India’s largest minority religions.

GANHRI

  • Global Alliance of National Human Rights Institutions (GANHRI) was established in 1993. 
  • Until 2016, it was called the International Coordinating Committee for National Human Rights Institutions (ICC). 
  • GANHRI promotes and strengthens NHRIs to be in accordance with the Paris Principles, and provides leadership in the promotion and protection of human rights. 
  • GANHRI is a body of 120 members, of which 88 countries have “A” status accreditation, while 32 have “B” status” or are “partially compliant with the Paris Principles”.
  •  The NHRC used to have “A” accreditation.
  • The Paris Principles were adopted in 1993 by the UNGA.

Paris Principles

  • The United Nations’ Paris Principles, adopted in 1993 by the U.N. General Assembly, provide the international benchmarks against which National Human Rights Institutions (NHRI) can be accredited.
  • The Paris Principles set out six main criteria that NHRIs are required to meet. 
  • These are: mandate and competence; autonomy from government; independence guaranteed by a statute or Constitution; pluralism; adequate resources; and adequate powers of investigation.
CARE MCQ UPSC PYQ
Q4. Which of the following statements is incorrect?

  1. Global Alliance of National Human Rights Institutions (GANHRI) deferred the accreditation of the National Human Rights Commission-India (NHRC) for the second year in a row. 
  2. The United Nations’ Paris Principles, provide the international benchmarks against which National Human Rights Institutions (NHRI) can be accredited.
  3. The National Human Rights Commission-India (NHRC) is a constitutional body.
  4. The Paris Principles set out six main criteria that NHRIs are required to meet. 
Q. Consider the following:

1. Right to education

2. Right to equal access to public service

3. Right to food

Which of the above is/are Human Right/ Human Rights under “Universal Declaration of Human Rights”? [UPSC Prelims 2011]

(A) 1 only

(B) 1 and 2 only

(C) 3 only

(D) 1, 2 and 3

Answer: (D)

Answer 4 C

Explanation

  • The National Human Rights Commission of India (abbreviated as NHRC) is a statutory body constituted on 12 October 1993 under the Protection of Human Rights Ordinance of 28 September 1993.
  • It was given a statutory basis by the Protection of Human Rights Act, 1993 (PHRA). 
  • The NHRC is responsible for the protection and promotion of human rights, defined by the act as “Rights Relating To Life, liberty, equality and dignity of the individual guaranteed by the constitution or embodied in the international covenants and enforceable by courts in India”.
  • Therefore, option C is the correct answer.   

India’s top trade partner: China regains spot on higher imports

Source: The Indian Express

https://indianexpress.com/article/business/indias-top-trade-partner-china-regains-spot-on-higher-imports-9324553/

UPSC Syllabus Relevance:  GS 3- External trade, Economy

Context: India’s bilateral trade with China in FY24

Why in news 

  • China has overtaken the US to become India’s largest trading partner after a gap of two years.

Key Highlights

  • With imports from China crossing over $100 billion in FY24, China has overtaken the US to become India’s largest trading partner after a gap of two years, as per data released by the think tank Global Trade Research Initiative (GTRI).
  • The US was India’s top trading partner during FY22 and FY23 after China was the top bilateral trading partner in FY21.
  • India’s bilateral trade with China in FY24 stood at $118.4 billion as imports increased by 3.24 per cent to $101.7 billion and exports rose by 8.7 per cent to $16.67 billion in FY24 compared to FY23, GTRI data showed.
  • Between FY19 and FY24, India’s exports to China witnessed a marginal decline in exports by 0.6 per cent, down from $16.75 billion to $16.66 billion, while imports from China surged by 44.7 per cent, up from $70.32 billion to $101.75 billion.

India-US Trade

  • India-US two-way trade came in at $118.3 billion in FY24 after exports dipped by 1.32 per cent to $77.5 billion compared to the previous financial year. 
  • Meanwhile, imports also dipped 20 per cent to $40.8 billion.
  • During the last five years, trade with the US showed positive growth, with exports increasing significantly by 47.9 per cent from $52.41 billion to $77.52 billion. 
  • Imports from the US grew by 14.7 per cent, rising from $35.55 billion to $40.78 billion. This resulted in an expanded trade surplus for India, which grew from $16.86 billion to $36.74 billion, GTRI report said.

India trade relations with China

  • India trade relations with China have been under scrutiny largely due to India’s dependence on the neighbouring country’s critical products such as telecom & smartphone parts, pharma, advanced technology components among others.
  • In the fast emerging EV sector too, India’s dependence on China is high as lithium-ion batteries for EVs, imported from China, were valued at $2.2 billion, comprising 75 per cent of such imports, critical for India’s electrification of transport.
  • The GTRI report further said that exports to China have remained near stagnant between FY19 and FY24 while imports have surged by nearly 45 per cent which has resulted in widening of the trade deficit from $53.57 billion in FY 2019 to $85.09 billion in FY 2024.

India-Russia Trade

  • During the last five years, Russia’s trading figures were marked by a dramatic increase, with exports growing by 78.3 per cent from $2.39 billion to $4.26 billion, while imports soared by 952 per cent from $5.84 billion to $61.44 billion, widening the trade deficit from $3.45 billion to $57.18 billion.

India’s trade with Gulf countries

  • Saudi Arabia’s exports to India more than doubled, with a 107.9 per cent increase from $5.56 billion to $11.56 billion. 
  • Imports rose at a slower pace by 11.7 per cent from $28.48 billion to $31.81 billion, which slightly reduced the trade deficit from $22.92 billion to $20.25 billion.
  • Trade with UAE rose by 18.3 per cent from $30.13 billion to $35.63 billion, and imports increased substantially by 61.2 per cent from $29.79 billion to $48.02 billion. 
  • This shift turned a marginal trade surplus of $0.34 billion in FY19 into a deficit of $12.39 billion by FY24

Measures to decrease India’s dependence on China

  • To meet the increasing demand for goods and services and promote the ‘Make in India’ initiative, the government has implemented various measures to boost domestic manufacturing and reduce dependence on imports. 
  • One such initiative is the production-linked incentive (PLI) schemes in 14 critical sectors including electronics, pharmaceuticals, white goods, telecom and networking products, which are heavily dependent on imports.
  • India has been trying to shift its trade strategy from east to west by looking to sign free-trade agreements with major economies. 
  • Negotiations are underway with countries such as the US, UK, Australia, Japan, Peru, Chile and Asean countries. 
  • By the end of 2024, India could sign, or be close to signing, FTAs with all major economies except China.
CARE MCQ UPSC PYQ
Q5.  Consider the following statements:

1. The US has overtaken the China to become India’s largest trading partner after a gap of two years.

2. India has implemented production-linked incentive schemes (PLI), anti-dumping duties, and quality control orders to reduce dependency on China.

Which one of the following is correct in respect of the above statements?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct
Q. With reference to the international trade of India at present, which of the following statements is/are correct? (UPSC Prelims 2020)

  1. India’s merchandise exports are less than its merchandise imports.
  2.  India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
  3. India’s exports of services are more than its imports of services.
  4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below :

  1. 1 and 2 only
  2. 2 and 4 only
  3. 3 only
  4. 1, 3 and 4 only

Ans – D

Answer 5 D

Explanation

  • The US was India’s top trading partner during FY22 and FY23 after China was the top bilateral trading partner in FY21. China has overtaken the US to become India’s largest trading partner after a gap of two years.
  • Hence Statement 1 incorrect
  • To minimise its dependency on Chinese imports, India has implemented various measures, including production-linked incentive schemes (PLI), anti-dumping duties, and quality control orders. Hence Statement 2 correct
  • Therefore, option D is the correct answer. 

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