New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What measures are being implemented to improve the

    resilience of India's external sector?
    A Free Trade Agreements Correct Answer Incorrect Answer
    B International settlement in Indian Rupee Correct Answer Incorrect Answer
    C National Logistics Policy Correct Answer Incorrect Answer
    D All the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The measures being considered/ implemented to improve the resilience of India's external sector are Free Trade Agreements, National Logistics Policy, and efforts to promote international trade settlement in Indian Rupees. The Free Trade Agreements would address external frictions by creating opportunities for exports at concessional tariffs and non-tariff barriers. Efforts are underway to promote international trade settlement in Indian Rupees. Once this initiative gain traction, dependence on foreign currency would potentially reduce, making the economy less vulnerable to external shocks. National Logistics Policy would ease the domestic frictions to encourage Indian exports by reducing the cost of internal logistics. Hence Option D is correct.

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