Multiple choice

India is taking several steps to promote exports mainly because

  1. it will provide freight for India ships

  2. it will reduce the trade deficit

  3. it will enable exporters to make profit

  4. it will provide makers for local produce
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India promotes exports primarily to reduce its trade deficit. A trade deficit occurs when a country's imports exceed its exports. By boosting exports, India can earn more foreign exchange, reduce the deficit, improve its balance of payments, and strengthen the economy. Export promotion also helps domestic industries grow and create jobs.

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