Consider the following statements:  

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade 

2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 

3. In the last five years, Nepal has been the largest trading partner of India in South Asia.

Which of the statements given above is/are correct? 

(a) 1 and 2 only 

(b) 2 only 

(c) 3 only 

(d) 1, 2 and 3 

Answer: b

Explanation:

India Srilanka Trade:

India has traditionally been among Sri Lanka’s largest trade partners and Sri Lanka remains among the largest trade partners of India in the SAARC. India is Sri Lanka’s largest trading partner. The Value of trade between India and Sri Lanka is not showing a consistent increasing trend instead it is increasing and decreasing hence following a zigzag pattern.

India’s Bilateral Trade with Srilanka (2018-2023)               Value in USD Million

Hence, statement 1 is incorrect.

India and Bangladesh trade: Bangladesh is the largest trading partner of India in South Asia.

• Major principal commodities exported from India to Bangladesh include cotton yarn, fabrics, made-ups, handloom products(US$ 1.52 billion), followed by mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral waxes (US$ 1.17 billion); vehicles other than railway or tramway rolling stock, and parts and accessories thereof; nuclear reactors, boilers, machinery and mechanical appliances; and residues and waste from the food industries; prepared animal fodder, in April-October FY25.
• Major principal commodities imported by India from Bangladesh include articles of apparel and clothing accessories knitted or crocheted and not knitted or crocheted (US$ 595.53 million), followed by other vegetable textile fibres, paper yarn, and woven fabrics of paper yarn aircraft (US$ 217.51 million), spacecraft, and parts thereof (US$ 176.02 million) in FY24.

Hence, statement 2 is correct.

India and South Asia Trade:

• India is the biggest trading partner for Nepal, Bhutan and Sri Lanka. 
• As per 2024 data, Bangladesh is the largest trading partner of India in South Asia, followed by Nepal, Sri Lanka, Pakistan, Bhutan, Maldives and Afghanistan. 
• India enjoys a substantial trade surplus with all the countries in South Asia.

                                             Indias trade with  SOUTH ASIA   (2019-20 ) Value in USD Million

Hence, statement 3 is incorrect. 

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