Question

Directions for questions 86 to 90: Study the tables of the Indian foreign trade given below to answer the questions.

Principal Commodities\' Import - Weight (%)
COMMODITIES	2003-04	2004-05	2005-06
Bulk imports	37.87	39.09	42.56
Pearls, precious & semi-precious stones	9.25	8.80	6.42
Machinery	10.63	10.00	10.94
Project Goods	0.49	0.54	0.57
Others	41.76	41.57	39.51
TOTAL IMPORTS	100.00	100.00	100.00
Total Imports (in Crore of Rupees)	359107.66	501064.54	630526.77

Principal Commodities\' Export - Weight (%)
COMMODITIES	2003-04	2004-05	2005-06
Plantations	0.92	0.78	0.71
Agri & allied products	8.39	7.61	7.21
Marine products	2.08	1.60	1.40
Ores & minerals	3.69	5.29	6.02
Leather & mfrs.	3.19	2.89	2.56
Gems & jewellery	16.56	17.29	15.13
Sports goods	0.15	0.12	0.13
Chemicals & related products	15.43	16.00	15.10
Engineering goods	16.41	18.41	18.66
Electronic goods	2.74	2.28	2.18
Project goods	0.09	0.06	0.13
Textiles	18.86	15.16	14.80
Handicrafts	0.70	0.43	0.40
Carpets	0.90	0.75	0.81
Cotton raw incl. waste	0.28	0.10	0.61
Petroleum products	5.54	8.57	11.21
Unclassified exports	4.07	2.66	2.94
GRAND TOTAL	100.00	100.00	100.00
Total Exports in Rupees Crore	293366.75	375339.53	454799.97
US Dollar Exchange Rate	45.9513	44.9315	44.2735

In the year 2005-06 the commodity which witnessed maximum growth in exports (in Indian Rupees) as compared to the year 2004-05 is:

• A. petroleum products
• B. project goods
• C. ores & minerals
• D. sports goods

Hint:

The question asks for growth "in Indian Rupees", meaning the actual rupee increase in export value, not the percentage growth rate. Convert each commodity's weight to a rupee value first, then compare the increase.

Answer 1

The Correct Option is A

The phrase "in Indian Rupees" is the key clue here: it tells us to work out the actual rupee amount added, not a percentage rate. A tiny commodity like project goods can double or triple in percentage terms and still add almost nothing in rupees, while a large commodity like petroleum products adds a huge rupee amount even with a smaller percentage jump.

Convert each candidate's weight share into a rupee value using Total Exports for that year (Rs. 375339.53 crore for 2004-05 and Rs. 454799.97 crore for 2005-06), then subtract:

\[ \Delta_{\text{petroleum}} = (0.1121 \times 454799.97) - (0.0857 \times 375339.53) = 50983.1 - 32166.6 = 18816.5 \text{ crore} \]\[ \Delta_{\text{ores \\& minerals}} = (0.0602 \times 454799.97) - (0.0529 \times 375339.53) = 27379.0 - 19855.5 = 7523.5 \text{ crore} \]\[ \Delta_{\text{project goods}} = (0.0013 \times 454799.97) - (0.0006 \times 375339.53) = 591.2 - 225.2 = 366.0 \text{ crore} \]\[ \Delta_{\text{sports goods}} = (0.0013 \times 454799.97) - (0.0012 \times 375339.53) = 591.2 - 450.4 = 140.8 \text{ crore} \]

Petroleum products clearly wins by a wide margin, adding more than double the rupee value that ores and minerals added, and far more than project goods or sports goods.

Let's summarize:

• "Growth in Indian Rupees" means the absolute rupee increase, not a percentage rate; small-base commodities can mislead you if you only look at percentages.
• Petroleum products added about Rs. 18816.5 crore, the largest rupee increase among all commodities in the export table.

So the answer is petroleum products.