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    Question

    What was the primary factor contributing to the significant increase in India's steel trade deficit to ₹6,704 crore in the first quarter of FY25?

    A A rise in export volumes of finished steel Correct Answer Incorrect Answer
    B Increased competition from China leading to loss of key export markets Correct Answer Incorrect Answer
    C A decrease in import costs of finished steel Correct Answer Incorrect Answer
    D Growth in domestic steel production Correct Answer Incorrect Answer
    E Strengthening of the Indian rupee Correct Answer Incorrect Answer

    Solution

    The substantial increase in India's steel trade deficit to ₹6,704 crore in Q1FY25 was primarily attributed to intensified competition from China. This competition led to a loss of key export markets and a significant decline in export volumes, which, combined with increased steel imports, widened the trade deficit. The impact of rising imports and declining exports, particularly from competitive markets like China, was a major contributing factor to the deficit.

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