The correct option is 1 and 3 only.
Explanation
India’s foreign trade has undergone significant structural changes since independence, characterized by a massive expansion in volume and a shift in composition from primary products to manufactured goods. However, the balance of trade has largely remained negative due to high import requirements.
Statement 1 is Correct:
India’s total foreign trade volume has witnessed exponential growth since independence. In 1950-51, the total value of foreign trade was approximately ₹1,214 crore. By recent decades, this figure has grown significantly more than sixty-fold, reaching tens of lakh crores (or hundreds of billions of USD). This surge is attributed to economic liberalization, industrialization, and integration with the global economy.
Statement 2 is Incorrect:
India has not maintained a trade surplus consistently since 1991. On the contrary, India typically runs a trade deficit (where imports exceed exports). This is primarily driven by the high import bill for crude oil, gold, and capital goods. While there were rare instances of a marginal trade surplus in the 1970s (e.g., 1972-73 and 1976-77), the post-1991 period has been marked by a consistent merchandise trade deficit.
Statement 3 is Correct:
The composition of India’s export basket has shifted from agriculture and raw materials to manufactured goods. Currently, manufactured goods (including engineering goods, chemicals, textiles, and gems & jewelry) constitute the largest share of India’s merchandise exports. Engineering goods often lead this category, followed by petroleum products and gems & jewelry.
Key Takeaway:
India’s foreign trade is characterized by a structural trade deficit and a dominance of manufactured goods in the export basket. The volume of trade has expanded drastically since 1950, far exceeding a sixty-fold increase.