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Indian Economy: External Sector & Trade PYQ.

UPSC Prelims previous year questions on External Sector & Trade (Indian Economy) — real questions with answers and explanations.

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2024Current AffairsStatement-I & Statement-II (Assertion-Reason Style)External Sector & Trade

Consider the following statements: Statement-I: India does not import apples from the United States of America. Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.

A.Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
B.Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
C.Statement-I is correct, but Statement-II is incorrect
D.Statement-I is incorrect, but Statement-II is correct
Explanation: * Statement I is incorrect: India actively imports apples from the United States; following bilateral adjustments, India scrapped its 20 per cent retaliatory tariffs on American agricultural goods, leading to a major surge in US apple imports. * Statement II is correct: Under India's import and food safety policies, the import of any Genetically Modified (GM) foods or Genetically Modified Organisms (GMOs) strictly requires mandatory prior clearance from the Genetic Engineering Appraisal Committee (GEAC) alongside a No Objection Certificate from the FSSAI. Thus, option (d) is correct.
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