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Q1. In which year did India's external trade value reach Rs. 77,19,796 crore?
Answer: B — The study material explicitly states that India's external trade rose to Rs. 77,19,796 crore in 2020-21, showing massive growth from Rs. 1,214 crore in 1950-51.
Q2. Which of the following commodities contributed the largest share to India's exports in 2021-22?
Answer: C — Manufactured goods accounted for 67.8 per cent of India's total value of exports in 2021-22, the highest among all commodity groups.
Q3. What was the primary reason India stopped importing foodgrain after the 1970s?
Answer: B — The Green Revolution made India self-sufficient in foodgrain production, eliminating the need for imports that were critical during the 1950s and 1960s.
Q4. Study Table 8.4. Which import category showed the highest percentage in 2021-22?
Answer: C — Fuel (coal and petroleum products) constituted 31.6 per cent of India's imports in 2021-22, the largest category, indicating rising industrialisation and energy demands.
Q5. Which factor CANNOT be identified as a reason for the sharp rise in India's international trade since 1950-51?
Answer: D — While manufacturing growth, liberal policies, and market diversification are real reasons for increased trade, India still maintains a trade deficit (imports > exports), which has not been eliminated.
Q6. Assertion: India imports edible oil despite having an agricultural economy. Reason: India's domestic oil production meets only a portion of the total demand from its growing population. Choose the correct answer:
Answer: A — India's agricultural capacity is insufficient to meet domestic edible oil demand due to population growth and rising living standards, making imports necessary despite agricultural strength.
Q7. Based on Table 8.2, compare the share of manufactured goods in exports between 2015-16 and 2021-22. What does this trend indicate?
Answer: B — Table 8.2 shows manufactured goods declined from 72.9% (2015-16) to 67.8% (2021-22), indicating increased competition and diversification of India's export basket toward petroleum products.
Q8. Why does India have more ports on its west coast than its east coast?
Answer: B — Geographical advantages of the west coast include proximity to major trading blocs (EU, Middle East), shorter shipping distances, and naturally superior harbour infrastructure compared to the east coast.
Q9. Calculate the percentage growth in India's external trade value from 1950-51 (Rs. 1,214 crore) to 2020-21 (Rs. 77,19,796 crore). Which range is correct?
Answer: C — Using formula: Growth = (77,19,796 ÷ 1,214) - 1 ≈ 6,300 times or 6,300% increase, indicating massive expansion in trade volume over 70 years due to liberalisation and industrialisation.
Q10. Observe the trade balance data in Table 8.1. What does the increasingly negative trade balance (from -1,25,725 crore in 2004-05 to -14,25,753 crore in 2021-22) suggest about India's economy?
Answer: B — Growing trade deficit is normal for developing economies transitioning to higher consumption levels; it reflects increased imports of capital goods, fuel, and raw materials needed for industrialisation and improved living standards, not economic weakness.
What was India's external trade value in 1950-51?
Rs. 1,214 crore.
Why does India import edible oil despite being agriculturally rich?
Domestic production is insufficient to meet the rising demand from a growing population and improved living standards.
What percentage of India's exports came from manufactured goods in 2021-22?
67.8 per cent.
Name one reason for the decline in traditional agricultural exports from India.
Tough international competition from other countries.
Which commodity group forms the largest share of India's imports in 2021-22?
Fuel (coal and petroleum products) at 31.6 per cent.
What is the main reason India stopped importing foodgrain after the 1970s?
Success of the Green Revolution made India self-sufficient in foodgrain production.
Which route carries most of India's foreign trade?
Sea routes carry the majority of India's foreign trade due to cost-effectiveness and capacity.
Name two commodities that are major items in India's import basket.
Petroleum products, capital goods, edible oils, and fertilisers are major import items.
What does a trade deficit mean?
Imports are greater in value than exports, resulting in negative trade balance.
Why does India have more ports on its west coast than east coast?
Geographical advantage of shorter sea routes to Middle East and Europe, and better natural harbours on the western coast.
Define international trade and state why no country can be completely self-sufficient. [2 marks]
Exchange of goods/services between nations. Self-sufficiency impossible because: unequal resource distribution (some countries have oil, some have minerals), labour specialisation advantages, and comparative cost differences.
Analyse the changing composition of India's exports from 2015-16 to 2021-22 (use Table 8.2). What do these changes reveal about India's economic transformation and international competitiveness? [5 marks]
Key shifts: manufactured goods declined 72.9% → 67.8%; petroleum products rose 11.9% → 16.4%; agriculture fell 12.6% → 11.9%. Reveals: declining competitiveness in traditional sectors due to global competition, growing energy processing capacity, shift toward value-added manufacturing (engineering goods, gems).
Explain why India still imports edible oil and fertilisers despite having a large agricultural economy. How does this reflect the nature of India's development challenge? (Use examples from Table 8.4 and 8.5 to support your answer.) [6 marks]
Edible oil import (141,532 crore in 2021-22) despite agriculture: domestic production meets only ~50% demand; rising consumption from 1.4 billion people exceeds supply. Fertiliser imports (105,796 crore): chemical fertilisers for high-yield farming require imports of raw materials. Reflects: population growth outpacing agricultural productivity; dependency on manufacturing-based economy rather than subsistence agriculture; need for intensive farming methods. Contrast with past: 1950s foodgrain imports → 1970s Green Revolution ended this → now petroleum products (31.6%) dominate imports, showing transition from food scarcity to energy-intensive development.
Q1. Assertion (A):
India's international trade expanded from Rs. 1,214 crore in 1950-51 to Rs. 77,19,796 crore in 2020-21.
Reason (R):
Momentum from manufacturing sector growth, liberal government policies, and market diversification drove this expansion.
Answer: A — Both A and R are true, and R is the correct explanation of A — Both statements are factually accurate. The expansion is directly caused by the factors mentioned in the reason—manufacturing momentum, policy liberalisation, and market diversification are the primary drivers of India's trade growth.
Q2. Assertion (A):
The share of manufactured goods in India's exports decreased from 72.9% in 2015-16 to 67.8% in 2021-22.
Reason (R):
This decline was due to tough international competition and lower demand for Indian manufactured products globally.
Answer: B — Both A and R are true, but R is NOT the correct explanation of A — The assertion is correct based on Table 8.2. However, the reason is incomplete. While competition exists, the decline is also due to relative growth of other categories (crude petroleum increased from 11.9% to 16.4%). International demand for Indian manufactured goods remained strong; it's the percentage share that decreased as other commodities grew relatively faster.
Q3. Assertion (A):
India's import of fuel (Coal and POL) increased from 25.4% of total imports in 2015-16 to 31.6% in 2021-22.
Reason (R):
This increase reflects volatile international petroleum prices combined with India's rising industrialisation and improved living standards.
Answer: A — Both A and R are true, and R is the correct explanation of A — Both the assertion (from Table 8.4) and reason are correct. Rising fuel import share directly indicates expanding industrial activity and higher energy consumption from improved living standards, while international price volatility adds to the import burden, making the reason a valid explanation.
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Case Study:
A newspaper report from 2020 describes the relocation of a textile mill from Mumbai to a rural area in Gujarat. The report notes that the new location has lower land costs, access to a skilled but cheaper labour pool, and proximity to cotton-growing regions. However, the mill faced initial challenges in setting up power supply and transport connectivity.
Q1. Based on the passage, which factor most likely influenced the mill's decision to relocate from Mumbai to rural Gujarat?
Answer: B
Q2. The challenges faced by the mill in setting up power supply and transport connectivity highlight which concept from the chapter?
Answer: D
Q3. If the mill had stayed in Mumbai despite higher costs, which concept would best explain its continued operation there?
Answer: B
Q4. The passage suggests that the textile industry is primarily which type of industry based on its locational shift?
Answer: A
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Real CBSE board exam questions from past papers — free to attempt.
CBSE 2026 · Set 64/2/1 · 1 mark
Which one of the following contributes maximum in India's export?
CBSE 2026 · Set 64/1/1 · 5 marks
Analyse the importance of Indian seaports in the development of international trade.
CBSE 2026 · Set 64/2/1 · 1 mark
Which one of the following ports is situated at 'Zuari Estuary'?
CBSE 2026 · Set 64/1/2 · 5 marks
Analyse the changes in India's composition of foreign trade.
CBSE 2026 · Set 64/1/3 · 5 marks
Analyse the role of air transport in 'international trade' of India.
CBSE 2026 · Set 64/4/1 · 5 marks
Analyse the changing pattern of export composition in India between 2009 to 2017.
CBSE 2026 · Set 64/5/1 · 1 mark
Between 2010 − 11 and 2016 − 17, which one of the following regions had the lowest difference in imports ? Direction of India's Import Trade (in ₹ crore): Europe (323857 to 403972), Africa (118612 to 193327), North America (100602 to 195332), Latin America (64576 to 115762), Asia and ASEAN (1029881 to 1544520)
CBSE 2026 · Set 64/5/1 · 1 mark
Which one of the following shows the correct increase in imports with Africa between 2010 − 11 and 2016 − 17 ?
CBSE 2026 · Set 64/5/1 · 1 mark
Arrange the following regions of the world from the lowest to the highest order on the bases of imports during 2016 − 17 and choose the correct option: I. Europe II. Africa III. North America IV. Latin America
CBSE 2026 · Set 64/5/1 · 3 marks
Explain the main reasons for the increase in imports of petroleum in India.
CBSE 2026 · Set 64/5/2 · 1 mark
Between 2010-11 and 2016-17, which one of the following regions had the lowest difference in imports? Direction of India's Import Trade (in ₹ crore): Europe (2010-11: 323857, 2016-17: 403972), Africa (2010-11: 118612, 2016-17: 193327), North America (2010-11: 100602, 2016-17: 195332), Latin America (2010-11: 64576, 2016-17: 115762), Asia and ASEAN (2010-11: 1029881, 2016-17: 1544520)
CBSE 2026 · Set 64/5/2 · 1 mark
Which one of the following shows the correct increase in imports with Africa between 2010-11 and 2016-17?
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