The correct option is 1 and 3 only.
Explanation
India’s foreign trade has undergone significant structural changes since Independence. The composition of trade has shifted from the exchange of primary commodities to a diverse mix of manufactured goods, petroleum products, and value-added items.
Statement 1 is Correct:
At the time of Independence, India’s exports were heavily reliant on traditional items like tea, jute, and cotton textiles. Since then, the trade composition has diversified substantially. The export basket now includes engineering goods, petroleum products, chemicals, pharmaceuticals, and electronic goods, reducing dependence on any single category.
Statement 2 is Incorrect:
Petroleum (Crude and products) constitutes the single largest item in India’s import basket by value. India imports a vast majority of its crude oil requirements. While gold is a significant import (often the second or third largest), it is not the largest item by value compared to energy imports.
Statement 3 is Correct:
Gems and Jewellery form a major component of India’s export basket. India is a global hub for cutting and polishing diamonds and manufacturing jewellery. The industry imports rough stones and gold, adds value through skilled labor, and exports the finished products, contributing significantly to foreign exchange earnings.
Key Takeaway:
Crude Oil is consistently the largest component of India's import bill, whereas Petroleum Products and Gems & Jewellery are among the top contributors to India's merchandise exports.