Assertion (A) is true: India's total merchandise exports indeed registered a negative growth of 2.17% during the financial year 2001-02, reflecting a slowdown in global demand. Reason (R) is also true: Several key export sectors, including iron and steel, coffee, textiles, and marine products, experienced negative growth or significant slowdowns in exports during the same period due to factors like global recessionary trends, price volatility, and specific trade barriers (like textile quotas). The decline in exports from these major sectors directly contributed to the overall negative growth in India's total exports. Therefore, Reason (R) provides a valid explanation for Assertion (A).
Assertion (A): During the year 2001 - 02, the value of India’s total exports declined, registering a negative growth of 2.17%. Reason (R): During the year 2001 - 02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.
Asked in UPPCS Prelims 2003 · Topic: Trade Balance and Trade Deficit/Surplus (Historical Trends and Composition of India's Trade Balance (Goods and Services))
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Answer: A. Both A and R are individually true and R is the correct explanation of A
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