With reference to the impact(s) of liberalization on India’s exports and imports, consider the following observations:
1. The share of Agriculture exports in India’s total exports has increased
2. The share of textiles in India’s total exports has decreased
3. The share of engineering goods exports in India’s total exports has increased
Which among the above statements is / are correct?

Answer: [B] Only 2 & 3

Agriculture and textiles, which used to account for 42 to 44 per cent of India’s total exports in the early nineties, are no longer the key drivers of India’s merchandise exports. The share of textiles in India’s total exports has fallen to less than 10 per cent and that of agriculture to seven per cent. While gems and jewellery have held ground in the last two decades, the smartest recovery took place in the engineering sector, a development that has surprised even policy makers in the government. In 1990-91, engineering goods exports were worth $2.2 billion or 12 per cent of total exports. In 2010-11, such exports accounted for over 24 per cent. The growth rates for engineering exports in the last few years have also been impressive, making this the largest foreign exchange earning sector, even ahead of software, which fetched $59 billion in 2011. Clearly, such growth in engineering goods exports cannot take place just because exporting firms used some incentives or concessions. India’s manufacturing sector has certainly acquired a competitive edge that helps it enter export markets with relative ease. That advantage is not likely to go away easily. Nor should, therefore, anyone fear that discontinuing the duty entitlement passbook (DEPB) scheme would put brakes on engineering exports. The total annual value of the DEPB scheme is only Rs 8,000 crore, so it cannot sustain the kind of rise in engineering exports the country saw in recent years.

This question is a part of GKToday's Integrated IAS General Studies Module