Question
Analyse the challenges being faced by India's foreign trade. What remedies will you suggest to overcome them?
Answer :
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Skip in 10
India’s foreign trade has expanded significantly since economic liberalization, yet it faces several structural and external challenges. One major challenge is the persistent trade deficit, particularly due to heavy dependence on imports of crude oil, gold, electronics, and advanced machinery. This imbalance puts pressure on the current account and exchange rate stability. Additionally, India’s export basket is still concentrated in low and medium value-added products such as textiles, gems and jewellery, and petroleum products, limiting competitiveness in high-technology and innovation-driven sectors. Global economic uncertainties, protectionist
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