20 multiple-choice (MCQ / objective) questions from this chapter, in every exam-style shape used in the paper. Every question comes with an explanation along with the answer, so you remember why the option is correct, not just which one it is.
1 Direct Questions
Direct Questions
- 1 markIndia’s contribution to the total volume of world trade is as low as about:
(A) 1 per cent(B) 5 per cent(C) 10 per cent(D) 25 per cent - 1 markWhat was the value of India’s external trade in 1950-51?
(A) Rs. 77,19,796 crore(B) Rs. 1,214 crore(C) Rs. 14,25,753 crore(D) Rs. 31,47,021 crore - 1 markThe manufacturing sector alone accounted for what share of India’s total export value in 2021-22?
(A) 57.8 per cent(B) 77.8 per cent(C) 47.8 per cent(D) 67.8 per cent - 1 markAccording to Table 8.6, which region supplied the largest share of India’s imports in 2021-22?
(A) Europe(B) Asia and ASEAN(C) North America(D) Africa - 1 markWhich two important ports did India lose as a result of Partition?
(A) Karachi and Chittagong(B) Mumbai and Kolkata(C) Kandla and Haldia(D) Chennai and Cochin - 1 markChennai Port, one of the oldest ports on the east coast and an artificial harbour, was built in:
(A) 1859(B) 1947(C) 1961(D) 1998 - 1 markSince 2017, how many unserved/underserved airports (including heliports and water aerodromes) has the UDAN scheme operationalised?
(A) 25(B) 50(C) 73(D) 100 - 1 markCochin Port, situated at the head of Vembanad Kayal, is popularly known as:
(A) Queen of the Arabian Sea(B) Gateway of the East(C) Singapore of India(D) Pearl of the Bay of Bengal
2 Assertion-Reason
Assertion-Reason
- 1 markAssertion (A): The share of manufactured goods in India’s exports kept rising steadily between 2015-16 and 2021-22.
Reason (R): China and other East Asian countries are India’s major competitors in the export of engineering goods.
(A) Both A and R are true, and R is the correct explanation of A(B) Both A and R are true, but R is not the correct explanation of A(C) A is true, R is false(D) A is false, R is true - 1 markAssertion (A): India presently has 12 major ports and 200 minor or intermediate ports.
Reason (R): The policy and regulatory functions of the minor ports are also decided by the central government.
(A) Both A and R are true, and R is the correct explanation of A(B) Both A and R are true, but R is not the correct explanation of A(C) A is true, R is false(D) A is false, R is true
3 Match the Following
Match the Following
- 1 markMatch List-I (Year, Table 8.1) with List-II (Trade Balance, Rs crore):
(i) 2004-05 (ii) 2009-10 (iii) 2013-14 (iv) 2021-22
(1) -8,10,423 (2) -14,25,753 (3) -1,25,725 (4) -5,18,202
(A) (i)-1, (ii)-2, (iii)-3, (iv)-4(B) (i)-4, (ii)-3, (iii)-2, (iv)-1(C) (i)-3, (ii)-4, (iii)-1, (iv)-2(D) (i)-2, (ii)-1, (iii)-4, (iv)-3 - 1 markMatch List-I (Commodity group) with List-II (Share in exports 2021-22, %, Table 8.2):
(i) Manufactured goods (ii) Crude and petroleum products (iii) Agriculture and allied products (iv) Ore and Minerals
(1) 16.4 (2) 2.0 (3) 67.8 (4) 11.9
(A) (i)-1, (ii)-3, (iii)-2, (iv)-4(B) (i)-3, (ii)-1, (iii)-4, (iv)-2(C) (i)-4, (ii)-1, (iii)-3, (iv)-2(D) (i)-3, (ii)-4, (iii)-1, (iv)-2
4 Statement-Based Questions
Statement-Based Questions
- 1 markConsider the following statements:
Statement I: The energy crisis of 1973 caused a fall in the price of petroleum.
Statement II: Following the 1973 energy crisis, India’s import budget was pushed up.
(A) Only Statement I is correct(B) Both statements are correct(C) Only Statement II is correct(D) Both statements are incorrect - 1 markConsider the following statements:
Statement I: Development and modernisation of Indian ports was earlier the responsibility of government agencies.
Statement II: Private entrepreneurs are now also invited for the modernisation of ports.
(A) Only Statement I is correct(B) Both statements are correct(C) Only Statement II is correct(D) Both statements are incorrect
5 Arrange in the Correct Order
Arrange in the Correct Order
- 1 markArrange the following events in chronological order: remodelling of Mormugao Port, the energy crisis that pushed up petroleum prices, construction of Chennai Port, Partition of India (loss of Karachi and Chittagong ports).
(A) Partition -> Chennai Port -> Mormugao remodelling -> energy crisis(B) Chennai Port -> Partition -> Mormugao remodelling -> energy crisis(C) Chennai Port -> Mormugao remodelling -> Partition -> energy crisis(D) Energy crisis -> Mormugao remodelling -> Partition -> Chennai Port
6 Fill in the Blanks
Fill in the Blanks
- 1 markThe value of India’s exports has always been ________ than the value of its imports, which is why India’s trade deficit continues.
(A) lower(B) higher(C) equal(D) double
7 Odd One Out
Odd One Out
- 1 markWhich of the following is NOT a route through which India’s foreign trade is carried?
(A) Sea route(B) Undersea pipeline to Australia(C) Air route(D) Land route (to Nepal, Bhutan, Bangladesh and Pakistan)
8 Passage-Based Questions
Passage-Based Questions
Passage
The composition of commodities in India’s international trade has kept changing over the years. In exports, the share of agriculture and allied products and of manufactured goods has decreased, whereas the share of crude petroleum and products and of other commodities has increased. The share of ore and minerals has remained largely constant over the years from 2015-16 to 2021-22. The decline in traditional items is largely due to tough international competition: among agricultural products, the export of a traditional item such as cashew has declined, though an increase has been registered in floricultural products, fresh fruits, marine products and sugar.
- 1 markAccording to the passage, which two commodity groups have seen their share in exports INCREASE?
(A) Agricultural products and manufactured goods(B) Ore and minerals, and agricultural products(C) Crude petroleum and products, and other commodities(D) Manufactured goods and ore-minerals
Passage
The British used India’s ports as suction points for resources from their hinterlands. The extension of railways towards the interior linked local markets to regional markets, regional markets to national markets, and national markets to international markets, a trend that continued till 1947. It was expected that the country’s Independence would reverse this process, but the Partition of the country snatched away two very important ports: Karachi port went to Pakistan, and Chittagong port went to the then East Pakistan, now Bangladesh. To compensate the losses, many new ports, like Kandla in the west and Diamond Harbour near Kolkata on the river Hugli in the east, were developed.
- 1 markAccording to the passage, how did the British mainly use India’s ports?
(A) Only for passenger transport(B) Only as military bases(C) As centres for fishing(D) As suction points to draw resources from their hinterlands
9 True / False
True / False
- 1 markConsider the following statements and choose the correct one:
(i) India has 12 major ports.
(ii) The west coast has more ports than the east coast.
(iii) Kolkata Port is located right at the mouth of the Bay of Bengal, on the open coast.
(A) Only (ii) and (iii)(B) Only (i) and (iii)(C) Only (i) and (ii)(D) All are correct
Answer Key and Explanations
Direct Questions
- (A) The chapter states that although India’s contribution to world trade is as low as about one per cent of the total volume, it still plays a significant role in the world economy.
- (B) The chapter states that in 1950-51, India’s external trade was worth Rs. 1,214 crore, which rose to Rs. 77,19,796 crore in 2020-21.
- (D) The chapter states the manufacturing sector alone accounted for 67.8 per cent of India’s total value of exports in 2021-22.
- (B) Table 8.6 shows imports from Asia and ASEAN worth Rs. 29,18,577 crore in 2021-22, far ahead of every other listed region.
- (A) The chapter states the Partition of the country snatched away two very important ports: Karachi port went to Pakistan, and Chittagong port went to the then East Pakistan, now Bangladesh.
- (A) The chapter states Chennai Port is an artificial harbour built in 1859, and is not much suitable for large ships because of shallow waters near the coast.
- (C) The chapter states that since 2017, under the UDAN scheme, a total of 73 unserved/underserved airports, including 9 heliports and 2 water aerodromes, have been operationalised (Source: PIB, Ministry of Civil Aviation, 2023).
- (A) The chapter states Cochin Port, situated at the head of Vembanad Kayal, is popularly known as the ‘Queen of the Arabian Sea’, and is a natural harbour advantageously close to the Suez-Colombo route.
Assertion-Reason
- (D) Table 8.2 shows the manufactured goods share actually falling, from 72.9% to 67.8%, so A is false. R is the chapter’s own true statement that China and other East Asian countries are major competitors.
- (C) A is the chapter’s own true statement. R is false: the chapter states the minor ports are those whose policy and functions are regulated by state governments, while the central government decides policy only for the major ports.
Match the Following
- (C) Table 8.1 gives the trade balance as -1,25,725 (2004-05), -5,18,202 (2009-10), -8,10,423 (2013-14) and -14,25,753 (2021-22) crore rupees.
- (B) Table 8.2 (2021-22) gives manufactured goods 67.8%, crude and petroleum products 16.4%, agriculture and allied products 11.9%, and ore and minerals 2.0%.
Statement-Based Questions
- (C) Statement I is incorrect: the chapter states the 1973 energy crisis pushed up, not down, the price of petroleum. Statement II is the chapter’s own true statement: after the 1973 energy crisis the import budget was also pushed up.
- (B) Both statements are the chapter’s own true statements: development was earlier a government-agency responsibility, but considering the increase in function and the need to match international ports, private entrepreneurs are now also invited.
Arrange in the Correct Order
- (B) Chennai Port was built in 1859, Partition took place in 1947, Mormugao Port was remodelled in 1961, and the energy crisis came in 1973: this is the correct chronological order.
Fill in the Blanks
- (A) Table 8.1 shows imports have always exceeded exports in value, so exports have always been lower than imports, which is why India’s trade balance stays negative.
Odd One Out
- (B) The chapter names three routes for India’s foreign trade: most of it moves by sea and air routes, and a small portion by land route to neighbouring countries like Nepal, Bhutan, Bangladesh and Pakistan. No pipeline route to Australia is mentioned.
Passage-Based Questions
- (C) The passage states the share of crude petroleum and products and of other commodities has increased, while agriculture and allied products and manufactured goods have decreased.
- (D) The passage states the British used India’s ports as suction points for resources from their hinterlands.
True / False
- (C) (i) and (ii) are the chapter’s own true statements. (iii) is incorrect: Kolkata (Shyama Prasad Mookerjee) Port is located on the river Hugli, 128 km inland from the Bay of Bengal, not on the open coast.
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