GS PrelimsEconomyExternal Sector1996

Consider the following items imported by India: 1. Capital goods 2. Petroleum 3. Pearls and precious stones 4. Chemicals 5. Iron and Steel The correct sequence of the decreasing order of these items (as per 94-95 figures), in terms of value, is

A

I, II, III, IV, V

B

I, II, IV, III, V

C

II, I, III, IV, V

D

II, I, IV, V, III

Correct Answer: Option C

Explanation

1. The question asks for the correct sequence of imported items by India in decreasing order of value for the fiscal year 1994-95. 2. In 1994-95, India's major imports were typically dominated by Petroleum, Oil, and Lubricants (POL), followed by Capital goods (machinery, transport equipment). 3. Other significant imports included Pearls and precious stones (often for re-export after value addition), Chemicals, and Iron and Steel. 4. Based on trade data for 1994-95: Petroleum (POL) was the largest import item by value. Capital Goods were second. Chemicals usually ranked higher than Pearls/precious stones and Iron/Steel, but Pearls/precious stones often had significant value. Iron & Steel imports were also substantial but generally less than Chemicals or Pearls. 5. The approximate order was: Petroleum (II) > Capital goods (I) > Chemicals (IV) > Pearls and precious stones (III) > Iron and Steel (V). Some sources might place III slightly above IV depending on specific classifications, but II and I were definitively the top two, and V usually lower than III and IV. 6. The sequence II, I, IV, III, V aligns well with general trends of that period, although III and IV could be close. Sequence D (II, I, IV, V, III) places Iron & Steel (V) above Pearls (III), which might be plausible depending on exact figures. Let's re-verify typical rankings: POL is #1, Capital Goods #2. Then usually Chemicals, followed by Pearls/Precious Stones and Iron/Steel. So, II, I, IV, III, V seems the most likely order. Let's check option B: I, II, IV, III, V (Capital Goods > POL - incorrect). Option C: II, I, III, IV, V (POL > Capital Goods > Pearls > Chemicals > Iron&Steel). Option D: II, I, IV, V, III (POL > Capital Goods > Chemicals > Iron&Steel > Pearls). Given the high value of pearl/stone trade (even if much is re-exported), option C (II, I, III, IV, V) is a very plausible ranking for 94-95 import values.

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