Statement — Although India is still heavily dependent on agriculture, its share in global agricultural trade is low and even less than agriculture’s share in India’s total exports. Courses of Action — I. Efforts should be made to increase agricultural production. II. The exports of non-agricultural commodities should be reduced.

Difficulty: Medium

Correct Answer: if only I follows

Explanation:


Introduction / Context:
The statement highlights an export-composition gap: agriculture is central domestically but under-represented in global trade from India. Remedies should aim at competitiveness, quality, scale, and market access for farm goods—not at arbitrarily suppressing other export sectors.



Given Data / Assumptions:


  • Status: agriculture is vital domestically; agri share in global trade is low.
  • COA I: raise agricultural production (implicitly with quality, logistics, and standards).
  • COA II: reduce non-agricultural exports.


Concept / Approach:
A valid action should expand capacity/competitiveness in the underperforming segment. Increasing agricultural production (I), if coupled with quality control, infrastructure, and export standards, directly increases the potential exportable surplus and improves global presence. Reducing non-agri exports (II) does nothing to raise agri competitiveness; it merely distorts totals and could harm the broader economy, jobs, and foreign exchange.



Step-by-Step Solution:


1) Identify target: increase agri share in global trade.2) Action I expands supply base and potential export volume → relevant.3) Action II shrinks other sectors → irrelevant/harmful to objective.4) Conclude only I follows.


Verification / Alternative check:
Even if non-agri exports grow, a competitive agri sector can still raise its share by growing faster; cutting others is not a rational lever.



Why Other Options Are Wrong:


Only II/Either/Both: incorrectly treat suppression as a strategy.Neither: ignores the sensible supply-side remedy in I.


Common Pitfalls:
Confusing relative share with absolute volumes; a sector’s share rises by its own growth, not by damaging others.



Final Answer:
Only I follows.

More Questions from Course of Action

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