UPSC Prelims 1996 · General Studies

Question 140: Economy and Social Development

The changing composition of the export trade is indicative of structural transformation of Indian economy in favour of modernisation. The best indicator of the trend is the

arelative share of petroleum products in exports

bdecline in the share of agricultural products in exports

cconstant share of ores and minerals in exports

dincrease in the share of manufactured products in exports

AnswerThe answer is (d).

Modernisation of an economy shows up as a move from primary goods to manufactures: a rising share of manufactured products in exports (engineering goods, garments, chemicals) shows that industrial capacity is growing. A falling farm share alone could reflect weak farm exports, and petroleum products and ores are raw or semi-processed goods.

Why each option is right or wrong

(a) A rising share of petroleum products need not signal modernisation.
(b) A falling farm share could reflect weak agricultural exports, not industrial growth.
(c) A constant share of ores and minerals shows no structural change.
(d) Right: a rising share of manufactured goods signals industrial modernisation.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1996, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.