Multiple choice

The Govt. of India has announced a Rs.14,000 crore help package to exporters. Why exporters need a help of such nature?

  1. Rupee is appreciating sharply

  2. Few consignments of exports were destroyed by terrorists

  3. China has reduced its VAT rates hence its products have become cheaper for importers

  4. It was done to promote exports to SAARC member nations

  5. None of these
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A Correct answer
Explanation

When the rupee appreciates sharply against foreign currencies, Indian exports become more expensive for international buyers, making them less competitive in global markets. A Rs.14,000 crore package would be a government stimulus to help offset this disadvantage. The other options - terrorism damage, China's VAT rates, or SAARC promotion - are not the primary economic reasons for such export assistance.

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