Features, Problem and Policies of Agriculture..: NBSE Class 12

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Here, you will find summaries, questions, answers, textbook solutions, pdf, extras etc., of (Nagaland Board) NBSE Class 12 (Arts/Commerce) Economics Part II Chapter 2: Features, Problem and Policies of Agriculture and Foreign Trade. These solutions, however, should be only treated as references and can be modified/changed.

Introduction

Agriculture is the backbone of the Indian economy, providing livelihood to a significant portion of the population. It contributes to the GDP, supplies wage goods, offers employment, and provides raw materials for industries. Additionally, it plays a crucial role in international and domestic trade, and a significant portion of the country’s wealth belongs to the agricultural sector.

However, Indian agriculture faces several challenges. Productivity is low, and there is a significant amount of disguised unemployment. Dependence on rainfall makes the sector vulnerable to climatic changes, and conflicts between landlords and tenants are common. The technology used is often outdated, and there is a lack of permanent irrigation facilities. Other issues include the pressure of population on land, social atmosphere, deficiency of finance, and a conventional outlook.

To address these issues, various policies have been implemented. These include the use of High-Yielding Variety (HYV) seeds and chemical fertilizers to enhance productivity. Despite these efforts, problems persist, such as inadequate irrigation facilities, exploitative agrarian relations, and lack of organized marketing systems.

Foreign trade is another significant aspect of the Indian economy. The New EXIM Policy 2015-20 was designed to promote exports of goods and services from India and facilitate essential imports. It introduced several new schemes, including the Niryat Bandhu Scheme for mentoring new and potential exporters, the Export Promotion Capital Goods (EPCG) scheme to facilitate import of capital goods, and the Market Access Initiatives (MAI) and Market Development Assistance (MDA) Scheme for improving market access and providing financial assistance for export promotion activities. Despite these initiatives, foreign trade still faces challenges such as an unfavorable balance of trade.

Textual questions and answers

A. Very short-answer questions

1. What is the contribution of agriculture in GDP?

Answer: During the period of planning, contribution of agricultural sector to the GDP has been ranging between 51 to 14.2 per cent for different years.

2. How does agriculture help in supply of raw materials to industries?

Answer: Agriculture supplies industrial raw material like cotton for the textile industry, seeds for the oil industry, and sugarcane for the sugar mills.

3. Name a few goods supplied to the industrial sector by the agricultural sector as raw materials.

Answer: Cotton, seeds, sugarcane.

4. Name a few goods exported by India.

Answer: Tea, jute, cashewnuts, tobacco, coffee and spices.

5. “Wealth of the Nation”. What does it mean in the favour of agricultural sector?

Answer: A significant component of the country’s wealth belongs to agricultural sector.

6. “There is disguished unemployment in agriculture”. True/False.

Answer: True

7. Define foreign trade.

Answer: Foreign trade of India is the trade between residents of India and residents of other countries of the world. It includes import and export of goods and services.

8. Name any two problems of foreign trade.

Answer: Unfavourable balance of payments, foreign competition.

9. Give any two objectives of EXIM—2015-20.

Answer: To promote exports of goods and services from India, to facilitate essential imports to promote economic growth.

10. Is employment affected by foreign trade?

Answer: Yes, employment is affected by foreign trade.

B. Short-answer questions-I

1. How does agriculture contribute to trade?

Answer: Agriculture contributes to international trade as India exports tea, jute, cashew nuts, tobacco, coffee, and spices. All these are farm products which make up a substantial percentage of India’s total exports. Agriculture also plays a significant role in the country’s domestic trade. Huge expenditure in India is incurred on the purchase of farm products needed by more than a billion people in the country.

2. Give any two points of importance of agriculture in the Indian economy.

Answer: Agricultural sector in India provides food to about 121 crore of people and fodder to about 51 crores of animals. 

Also, in India, agriculture is a significant source of employment. At present over fifty percent of the working population in India is engaged in the agricultural sector, implying that agriculture is the principal source of subsistence for the people in India.

3. Give the two features of Indian agriculture related to productivity and unemployment.

Answer: Two features of Indian agriculture related to productivity and unemployment are:

Low productivity: Low productivity is an indication of backwardness. Since the agricultural sector generates major demand for the industrial sector, the backwardness of the former implies slow growth of the latter.

Disguised Unemployment: It is abundantly found in Indian agriculture that the number of persons engaged on a piece of land is much higher than what is actually needed. Even when some are withdrawn, the total output will not fall.

4. “There is an exploitative relation between the tenant and the landlord”. How?

Answer: Most landlords are ‘absentee landlords’. They let out their holdings for farming and seldom do farming themselves. Relying on rental income, they tend to exploit their tenants by way of high rents and related charges. Most landlords would share the crop, but not the cost of cultivation. Having paid high rents to the absentee landlords, the tillers of the soil are left with little surplus for further investment. Accordingly, land continues to be used as a source of subsistence (or as a means of livelihood) rather than a source of business profits.

5. Give any two policies for agricultural sector.

Answer: The two major policies for the agricultural sector in India are:

• Abolition of Intermediaries: This policy was implemented to stop the exploitation of cultivators by landlords, also known as Zamindars. Ownership rights were conferred upon those who actually cultivate the soil, effectively abolishing the role of intermediaries.
• Ceiling on Land Holdings: This policy was introduced to promote equality in the distribution of land. A ceiling was imposed on the size of land holdings. The surplus land, over and above the ceiling limit, was resumed by the government and redistributed among small holders or landless labourers.

6. Write any three features of foreign trade. 

Answer: The three features of foreign trade are:

• India’s foreign trade has great significance for its GNP. In 1950-51, India’s foreign trade constituted 12 per cent of its gross national product. In 2015-16, it increased to 55.4 per cent of gross national income.
• India’s foreign trade is handled mainly by Mumbai, Kolkata and Chennai ports. These ports therefore remain over-busy. During the planning period, the government of India has developed three more ports, namely, Kandla, Cochin and Vishakhapatanam.
• Before Independence, India’s balance of trade was favourable. But after independence it became unfavourable, i.e. imports exceed exports.

7. What is EXIM Policy?

Answer: EXIM Policy is the Export-Import policy of a country which is a set of guidelines and instructions established by the governing body of the country in the context of the import and export of goods. The EXIM Policy 2009-2014 aimed to eliminate controls and to create an atmosphere of trust in the foreign trade sector. The New EXIM Policy 2015-20 was designed to promote exports of goods and services from India.

8. Write any three problems of foreign trade. 

Answer: The three problems of foreign trade are:

• Unfavourable balance of payments: The foremost problem of India’s foreign trade is unfavourable balances. It is due to excess of imports over exports.
• Foreign Competition: India’s exports are facing tough competition in the international market. Because of globalisation, the volume of foreign trade has increased.
• Essential Imports: Various items of Indian imports consist of essential items like petroleum products, technology, fertilizer, etc. whose demand cannot be curtailed.

C. Short-answer questions-II

1. “Agriculture is the backbone of Indian economy”. Discuss in brief.

Answer: Agriculture is pivotal to the Indian economy, engaging about 70% of the population at independence. It encompasses activities related to crop cultivation, providing essential goods for human survival. Although its GDP contribution has declined from 51% in 1950-51 to 15.3% in 2015-16, this doesn’t signify a decrease in its importance. Agriculture remains a significant source of employment, supplies industrial raw material, contributes to international and domestic trade, and forms a substantial part of the nation’s wealth.

2. What are the three important features of agriculture?

Answer: The three important features of Indian agriculture are:

(i) Low productivity: Low productivity is an indication of backwardness. Since the agricultural sector generates major demand for the industrial sector, backwardness of the former implies slow growth of the latter.

(ii) Disguised Unemployment: It is abundantly found in Indian agriculture that the number of persons engaged on a piece of land is much higher than what is actually needed. Even when some are withdrawn, total output will not fall.

(iii) Dependence on Rainfall: Good rainfall means good crop and bad rainfall means bad crop. Volatile farm output leads to volatile farm incomes. Consequently, the growth process fails to be stable.

3. Briefly discuss in short the policies adopted by the government for the agricultural sector.

Answer: The government has adopted several policies for the agricultural sector. These include:

• Abolition of Intermediaries: Intermediaries, popularly known as Zamindars, have been abolished. Ownership rights have been conferred upon those who actually cultivate (or till) the soil.
• Ceiling on Land Holdings: With a view to promoting equality in the distribution of land, a ceiling has been imposed on the holding size.
• Cooperative Farming: Cooperative farming is encouraged to further consolidate the gains of consolidation of holdings.
• Provision of Credit: Rural Development Banks have been established to cope with the credit needs of the farmers.
• Price Support Policy: Under this policy, the government assures a minimum price to the farmer for his produce.

4. Explain how did the intermediaries exploit the agricultural sector.

Answer: Intermediaries, popularly known as Zamindars, were abolished to stop the exploitation of the cultivators. Ownership rights have been conferred upon those who actually cultivate (or till) the soil. This has been done with a view to stopping exploitation of the cultivators by the zamindars.

5. How does foreign trade face unfavourable balance of trade?

Answer: The foremost problem of India’s foreign trade is an unfavourable balance, due to the excess of imports over exports. To meet this unfavourable balance of payments, India has to take loans from foreign countries, international institutions. Foreign debts carry an interest burden. Thus, India faces an acute problem of excessive external indebtedness.

6. What will happen if India adopts the Export Promotion Scheme?

Answer: If India adopts an Export Promotion Scheme, it can help boost exports and reduce trade deficits in the following ways:

• Providing incentives like duty drawbacks, tax rebates, and export subsidies to exporters can make Indian goods more competitive in the global market. This can increase demand for Indian exports.
• Improved export infrastructure like ports, logistic support, and trade facilitation centers can reduce costs and improve efficiency of exports.
• Promotional schemes like Market Access Initiative, Focus Market Scheme help explore new markets and diversify exports.
• Export promotion councils, trade exhibitions, marketing campaigns can promote Indian goods and improve perceptions about brand India.

D. Long-answer questions-I

1. “Agriculture is important for every economy”. Explain.

Answer: Agriculture is the backbone of the Indian economy. Agriculture includes all those activities which are related to the cultivation of land for the production of crops. Agriculture produces all such goods which are essential for the survival of human beings.

Moreover, agriculture is a significant source of employment in India. It engages a significant portion of the Indian population, providing livelihoods to millions of households. This sector is the principal source of subsistence for a large segment of the Indian population, particularly in rural areas where alternative employment opportunities may be limited.

Agriculture also plays a crucial role in the country’s GDP. Although the contribution of the agricultural sector to the GDP has been fluctuating over the years, it remains a significant part of the economy. The decline in the percentage contribution of agriculture to GDP does not indicate a decline in the importance of agriculture in the economy. Instead, it reflects the growth of other sectors, such as industry and services.

Furthermore, agriculture is a significant contributor to India’s international trade. India exports a variety of farm products, including tea, jute, cashew nuts, tobacco, coffee, and spices. These exports constitute a substantial percentage of India’s total exports, providing the country with much-needed foreign exchange for importing essential goods.

2. Explain the importance of agricultural sector in the Indian economy.

Answer: Agriculture is of critical importance in the Indian economy because of the following reasons:

• Contribution to GDP: During the period of planning, the contribution of the agricultural sector to the GDP has been ranging between 51 to 14.2 per cent for different years.
• Supply of Wage Goods: Wage goods are the necessities of life such as wheat, rice, pulses, bajra, oil seeds, etc. The agricultural sector in India provides food to about 121 crores of people and fodder to about 51 crores of animals.
• Employment: In India, agriculture is a significant source of employment. At present over fifty per cent of the working population in India is engaged in the agricultural sector, implying that agriculture is the principal source of subsistence for the people in India.
• Industrial Raw Material: Agriculture supplies industrial raw materials like cotton for the textile industry, seeds for the oil industry, and sugarcane for the sugar mills.
• Contribution to International Trade: India exports tea, jute, cashew nuts, tobacco, coffee and spices. All these are farm products which make up a substantial percentage of India’s total exports.
• Contribution to Domestic Trade: Agriculture also plays a significant role in the country’s domestic trade. This is borne out by the fact that huge expenditure in India is incurred on the purchase of farm products needed by more than a billion people in the country.

3. Explain the features of Indian agriculture.

Answer: The following are the principal features of Indian agriculture:

• Low productivity: Low productivity is an indication of backwardness. Since the agricultural sector generates major demand for the industrial sector, the backwardness of the former implies slow growth of the latter.
• Disguised Unemployment: It is abundantly found in Indian agriculture that the number of persons engaged on a piece of land is much higher than what is actually needed. Even when some are withdrawn, total output will not fall.
• Dependence on Rainfall: Good rainfall means good crop and bad rainfall means bad crop. Volatile farm output leads to volatile farm incomes. Consequently, the growth process fails to be stable.
• Landlord-tenant conflict: The bulk of the revenue is appropriated by owners (landlords). Tenants often get the bare minimum. The owners are the crop-sharers, not the cost-sharers. Consequently, the prosperity of agriculture remains a far-off dream.
• Backward Technology: In agriculture, there is heavy reliance on cattle power and manpower. The use of modern equipment like tractors and threshers is not a common practice. Consequently, productivity remains low.

4. Explain the government policies which favoured the agricultural sector.

Answer: The government policies that favoured the agricultural sector include the introduction of the Minimum Support Price (MSP) for agricultural products, the establishment of the Agricultural Prices Commission, and the implementation of the Green Revolution. The MSP was introduced to ensure a guaranteed price for the farmers’ produce, thereby providing them with a certain level of income security. The Agricultural Prices Commission was set up to advise the government on the pricing policies for agricultural commodities. The Green Revolution, which was implemented in the late 1960s, led to a significant increase in the production of food grains in the country, particularly wheat and rice. This was achieved through the use of high-yielding variety seeds, increased use of fertilizers, and expansion of irrigation facilities.

5. “Credit was a tedious task earlier but now farmers do not have to depend on intermediaries”. Explain.

Answer: Earlier, obtaining credit was a tedious task for farmers as they had to rely on local moneylenders who charged exorbitant interest rates. This often led to a cycle of debt for the farmers. However, with the introduction of institutional credit, farmers no longer have to depend on these intermediaries. The government has set up various institutions like cooperative banks and societies, commercial banks, and regional rural banks to provide credit to farmers at reasonable rates. This has made the process of obtaining credit easier and more affordable for farmers.

6. How foreign trade leads to economic growth?

Answer: Foreign trade can lead to economic growth in several ways. It allows a country to expand its market beyond its borders, thereby increasing the volume of goods and services it can sell. This can lead to an increase in the country’s income and employment levels. Furthermore, foreign trade can also lead to an increase in competition, which can stimulate innovation and improve productivity. It can also enable a country to obtain necessary capital, machines, and raw materials from more advanced and industrialised nations, which can contribute to industrialisation and economic development. The Planning Commission of India has given great importance to the development of foreign trade in the Five-Year Plans.

7. What is foreign Trade? Write its features in Indian context .

Answer: Foreign trade enables a country to acquire necessary assistance and other equipment for its economic development from abroad. The main features of India’s Foreign Trade are:

• Increasing share of Gross National Product: India’s foreign trade has great significance for its GNP. In 1950-51, India’s foreign trade constituted 12 per cent of its gross national product. In 2015-16, it increased to 55.4 per cent of gross national income.
• Dependence on a few ports: India’s foreign trade is handled mainly by Mumbai, Kolkata and Chennai ports. These ports therefore remain over-busy. During the planning period, the government of India has developed three more ports, namely, Kandla, Cochin and Vishakhapatanam.
• Balance of Trade: Before Independence, India’s balance of trade was favourable. But after independence it become unfavourable, i.e. imports exceed, exports.
• Increase in volume and value of foreign trade: Since independence, volume and value of India’s foreign trade have increased very much. India now imports and exports good at large value and volume.
• Dependent Trade: India’s foreign trade depends mostly on foreign shipping companies, insurance companies and banks. After Independence, the government has been paying special attention towards this aspect of foreign trade.
• State control over foreign trade: Under Export Import Policy (2009-14), the government progressively relaxed all controls over foreign trade. Main objective of the policy was to promote exports. Imports of non-essential goods are curbed.
• Declining Export-Import ratio: Export-Import ratio implies the percentage of total import bill that can be paid out of export earning. This ratio has declined in recent years.

8. Explain any five problems of foreign trade.

Answer: The problems of India’s foreign trade are:

• Unfavourable balance of payments: The foremost problem of India’s foreign trade is unfavourable balances. It is due to excess of imports over exports.
• Foreign Competition: India exports are facing tough competition in the international market.
• Essential Imports: Various items of Indian imports consist of essential items like petroleum products, technology, fertilizer, etc. whose demand cannot be curtailed.
• Low quality: Goods exported from India are of low quality as compared to goods of developed countries.
• Limited Market: Indian goods have market in a few countries abroad. So there is limited area for our exports, while goods of developed countries are sold worldwide.

E. Long-answer questions-II

1. “Agriculture is the backbone of Indian economy”. Explain.

Answer: Agriculture is of critical importance in the Indian economy because of the following reasons:

• Supply of Wage Goods: Wage goods are the necessities of life such as wheat, rice, pulses, bajra, oil seeds, etc. The agricultural sector in India provides food to about 121 crore of people and fodder to about 51 crore of animals.
• Employment: In India, agriculture is a significant source of employment. At present over fifty per cent of the working population in India is engaged in the agricultural sector, implying that agriculture is the principal source of subsistence for the people in India.
• Industrial Raw Material: Agriculture supplies industrial raw material like cotton for the textile industry, seeds for the oil industry, and sugarcane for the sugar mills. As a supplier of raw material, the agricultural sector is of primary significance for the growth of the industrial sector in the economy.
• Contribution to International Trade: India exports tea, jute, cashew nuts, tobacco, coffee and spices. All these are farm products which make up a substantial percentage of India’s total exports. Exports are a source of foreign exchange, which India needs for the import of defence goods and crude oil.
• Contribution to Domestic Trade: Agriculture also plays a significant role in the country’s domestic trade. This is borne out by the fact that huge expenditure in India is incurred on the purchase of farm products needed by more than a billion people in the country.
• Wealth of the Nation: A significant component of the country’s wealth belongs to the agricultural sector. In terms of fixed assets, land occupies the highest rank in India. Besides, capital worth crores of rupees stay invested in major and minor irrigation projects.

2. What are the features of the Indian economy?

Answer: The principal features of Indian agriculture are:

• Low productivity: Low productivity is an indication of backwardness. The agricultural sector generates major demand for the industrial sector, backwardness of the former implies slow growth of the latter.
• Disguised Unemployment: It is abundantly found in Indian agriculture that the number of persons engaged on a piece of land is much higher than what is actually needed. Even when some are withdrawn, the total output will not fall. The presence of disguised unemployment in the agricultural sector points to the lack of jobs outside agriculture. This is a sign of underdevelopment.
• Dependence on Rainfall: Good rainfall means a good crop and bad rainfall means a bad crop. Volatile farm output leads to volatile farm incomes. Consequently, the growth process fails to be stable.
• Landlord-tenant conflict: The bulk of the revenue is appropriated by owners (landlords). Tenants often get the bare minimum. The owners are the crop-sharers, not the cost-sharers. Consequently, prosperity of agriculture remains a far-off dream.
• Backward Technology: In agriculture, there is heavy reliance on cattle-power and manpower. Use of modern equipment like tractors and threshers is not a common practice. Consequently, productivity remains low.

3. Explain the importance of agriculture in Indian economy.

Answer: Agriculture is of critical importance in the Indian economy because of the following reasons:

• Supply of Wage Goods: Wage goods are the necessities of life such as wheat, rice, pulses, bajra, oil seeds, etc. The agricultural sector in India provides food to about 121 crore of people and fodder to about 51 crore of animals.
• Employment: In India, agriculture is a significant source of employment. At present over fifty per cent of the working population in India is engaged in the agricultural sector, implying that agriculture is the principal source of subsistence for the people in India.
• Industrial Raw Material: Agriculture supplies industrial raw material like cotton for the textile industry, seeds for the oil industry, and sugarcane for the sugar mills. As a supplier of raw material, the agricultural sector is of primary significance for the growth of the industrial sector in the economy.
• Contribution to International Trade: India exports tea, jute, cashew nuts, tobacco, coffee and spices. All these are farm products which make up a substantial percentage of India’s total exports. Exports are a source of foreign exchange, which India needs for the import of defence goods and crude oil.
• Contribution to Domestic Trade: Agriculture also plays a significant role in the country’s domestic trade. This is borne out by the fact that huge expenditure in India is incurred on the purchase of farm products needed by more than a billion people in the country.
• Wealth of the Nation: A significant component of the country’s wealth belongs to the agricultural sector. In terms of fixed assets, land occupies the highest rank in India. Besides, capital worth crores of rupees stay invested in major and minor irrigation projects.

4. What were the major policies adopted by the government to favour the agricultural sector?

Answer: The following are the policies of Agriculture:

• Use of HYV (High-Yielding Variety) Seeds: Since 1965, High-Yielding Variety seeds have replaced conventional varieties. HYV seeds (especially relating to wheat, bajra, rice, maize, jowar and cotton) have led to a substantial rise in crop productivity. This breakthrough is popularly known as Green Revolution.
• Use of Chemical Fertilizers: Chemical fertilisers are being increasingly used for enhancing productivity. The use of compost manure is also encouraged. The use of chemical fertilisers has considerably increased over time.
• Abolition of Intermediaries: Intermediaries, popularly known as Zamindars, have been abolished. Ownership rights have been conferred upon those who actually cultivate (or till) the soil.
• Ceiling on Land Holdings: With a view to promoting equality in the distribution of land, a ceiling has been imposed on the holding-size.
• Cooperative Farming: Cooperative farming is encouraged to further consolidate the gains of consolidation of holdings. It is encouraged also to enhance the bargaining power of the smallholders in the competitive marketing structure.
• Provision of Credit: Rural Development Banks have been established to cope with the credit needs of the farmers. After nationalisation, Commercial Banks have also been catering for the credit needs of the farmers. Regional Rural Banks have been established to further enhance credit facilities for farmers. In 1882, National Banks for Agriculture and Rural Development (NABARD) was established to institutionalise credit facilities for farmers at the national level. 
• Price Support Policy: To motivate the farmers to increase farm output, it is necessary to protect them against uncertainties in the market. Here comes the role of the price support policy. Under this policy, the government assures a minimum price to the farmer for his produce.

5. Make a comparison of how important agricultural sector is and what transformations have been done in its favour.

Answer: Agriculture is of critical importance in the Indian economy. It contributes significantly to the GDP, provides wage goods, offers employment to over fifty per cent of the working population, supplies industrial raw material, contributes to international and domestic trade, and constitutes a significant component of the country’s wealth. However, over time, the contribution of the agricultural sector to the GDP has declined, from as high as 51 per cent in 1950-51 to 14.2 per cent in 2011-12, and further to 15.3 per cent in 2015-16.

In terms of transformations, several policies have been adopted by the government to favour the agricultural sector. These include the use of High-Yielding Variety (HYV) seeds, increased use of chemical fertilizers, abolition of intermediaries, imposition of a ceiling on land holdings, promotion of cooperative farming, provision of credit through Rural Development Banks and other institutions, and the implementation of a price support policy to protect farmers against market uncertainties.

6. What are the major policies adopted by the Indian government to favour foreign trade?

Answer: Export-Import (Foreign trade Policy/Commercial Policy 2009-14): The foreign trade policy 2009-2014 was announced on 27th August 2009. Its main objectives were to arrest and reverse the declining trend of exports and to eliminate controls to create an atmosphere of trust in the foreign trade sector. Several schemes were launched under this policy, including the Vishesh Krishi Upaj and Gram Udyog Yojana, which promoted exports of agriculture products, forest-based products, and other products notified from time to time. The Focus Market Scheme was also launched to find new international markets for Indian goods.

New EXIM Policy 2015-20: Announced on 1st April 2015, this policy was designed to promote exports of goods and services from India. It introduced various incentives for procedural simplification and strengthening infrastructure related to exports and imports. Under this scheme, the Niryat Bandhu Scheme was started for mentoring new and potential exporters. The Export Promotion Capital Goods (EPCG) scheme was introduced to facilitate the import of capital goods for producing quality goods and services. The Market Access Initiatives (MAI) and Market Development Assistance (MDA) Scheme were launched to improve the market access of Indian exports in foreign markets.

7. How is growth in foreign trade a challenge for India?

Answer: The growth in foreign trade presents several challenges for India. Firstly, India’s exports face stiff competition in the international market due to globalization, which has led to an increase in the volume of foreign trade and the number of countries engaged in international trade. This has resulted in growing global competition in goods that India mainly exports, such as jute, tea, and textiles.

Secondly, a significant portion of Indian imports consists of essential items like petroleum products, technology, and fertilizers, the demand for which cannot be curtailed. This has created a problem for India to finance these essential imports through high-cost foreign debts.

Thirdly, the goods exported from India are often of lower quality compared to goods from developed countries. This, coupled with the fact that Indian goods have a market in only a few countries abroad, limits the area for Indian exports.

Furthermore, sometimes Indian exporters indulge in unfair trade practices, not supplying goods strictly according to the sample shown earlier, which shakes the confidence of foreign importers.

Another challenge is the level of technology in India, which is low compared to developed countries. Old and inferior machines are still in use, leading to inferior quality products and high production costs. Consequently, Indian industrial products fail to compete in international markets, adversely affecting exports.

Lastly, the unprecedented rise in the price of crude oil has badly affected India, resulting in a sharp decline in import bills, adversely affecting domestic industry, export-oriented units, and making trade unfavorable.

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