Question

India earns maximum foreign exchange by the export of?
1. Iron
2. Tea
3. Textile
4. Rubber

Answer 1

Correct Answer - Option 3 : Textile

The correct answer is Textile.

• Foreign Exchange:
  • According to the Reserve Bank of India (RBI) data, the country’s foreign exchange (forex) reserves touched a lifetime high of USD 555.12 billion after it surged by USD 3.615 billion in the week ended 16th October 2020.
  • The rise in total reserves was due to a sharp rise in Foreign Currency Assets (FCAs), a major component of the overall reserves.
  • FCA jumped by USD 3.539 billion to USD 512.322 billion.
  • Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills, and other government securities.
  • It needs to be noted that most foreign exchange reserves are held in U.S. dollars.

• Iron export:
  • The value of iron ore exported from India amounted to nearly 186 billion rupees in the fiscal year 2020.
  • This export value was significantly higher than the previous financial year's value of about 92 billion rupees.
• Tea:
  • Indian tea exports value FY 2020, by the destination country.
  • India exported tea worth 13.98 billion Indian rupees to Iran in the financial year 2020.
  • Even though Iran imported the highest worth of Indian tea, Russia imported the highest volume of Indian tea that same year.
• Rubber:
  • Natural rubber (NR) exports from India registered a quantum leap during the last fiscal, with 20,030 tonnes leaving the country. 
  • By contrast, in 2015-16, exports were just 865 tonnes.
  • NR exports stood at 30,594 tonnes in 2012-13.
  • But thereafter, owing to the relatively low price of NR in the international market, exports showed a declining trend.