Question:

Which one of the following contributes maximum in India’s export ?

Show Hint

Engineering goods and Gems/Jewelry are the top sub-categories within manufactured exports.
The shift from primary to manufactured exports indicates a developing industrial base.
  • \( \text{Agriculture and allied products} \)
  • \( \text{Ores and minerals} \)
  • \( \text{Manufactured goods} \)
  • \( \text{Mineral fuels and lubricants} \)
Show Solution
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The Correct Option is C

Solution and Explanation

Concept:
• India's foreign trade composition has shifted significantly over the decades from primary products to high-value processed goods.
• Exports are generally categorized into Agriculture, Ores and Minerals, Manufactured Goods, and Mineral Fuels (Petroleum products).
Manufactured goods encompass a wide range of products including engineering goods, gems and jewelry, chemicals, and textiles.

Step 1:
Analyse the composition of Indian exports
According to recent economic data and the Ministry of Commerce, the share of manufactured goods in India's total merchandise export basket has consistently been the largest. This includes engineering goods, which alone contribute a massive portion.

Step 2:
Evaluate other sectors

Agriculture and allied products: Although significant, their share has relatively declined as the economy diversified.
Ores and minerals: These are primary exports and contribute a much smaller percentage compared to value-added manufactured items.
Mineral fuels and lubricants: While India exports refined petroleum products, its total value is generally secondary to the combined manufacturing sector.

Step 3:
Conclusion
The "Manufactured goods" category represents the highest value contribution to India's total export earnings.
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