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Q92 (IAS/2024) Economy › External Sector & Trade › Trade policy reforms Official Key

Consider the following statements : Statement-I : India does not import apples from the United States of America. Statement-II : In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority. Which one of the following is correct in respect of the above statements ?

Result
Your answer:  ·  Correct: D
Explanation

The correct answer is option D because Statement-I is incorrect while Statement-II is correct.

**Statement-I is incorrect**: India does import apples from the United States of America. The US is one of the sources of apple imports for India, making this statement factually wrong.

**Statement-II is correct**: The Genetic Engineering Approval Committee (GEAC) under MoEF is the apex body to grant approval for large scale trials and commercial release of Living Micro Organisms (LMOs)/Hazardous Micro Organisms (HMOs)[1], which includes genetically modified organisms. The Genetic Engineering Appraisal Committee (GEAC), under the Ministry of Environment, Forest and Climate Change (MoEF&CC), is responsible for the assessment of proposals related to the release of genetically engineered organisms and products[2]. This regulatory framework means that GM food cannot be imported without approval from the competent authority (GEAC), making Statement-II correct.

Since Statement-I is incorrect and Statement-II is correct, option D is the right answer.

Sources
  1. [1] https://cms.rajyasabha.nic.in/UploadedFiles/Debates/OfficialDebatesDatewise/Floor/218/F18.12.2009.pdf
  2. [2] https://www.thehindu.com/news/national/explained-genetically-modified-crops-and-their-regulation-in-india/article66071153.ece
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Q. Consider the following statements : Statement-I : India does not import apples from the United States of America. Statement-II : In I…
At a glance
Origin: Mixed / unclear origin Fairness: Low / Borderline fairness Books / CA: 0/10 · 0/10

A classic mix of 'Market Awareness' (Statement I) and 'Static Law' (Statement II). Statement I is an observation test—if you've seen 'Washington Apples' in a market, you solve it. Statement II is standard Environment/Economy static theory regarding GEAC and FSSAI.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does India import apples from the United States of America?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 12: Major Crops and Cropping Patterns in India > Apple > p. 60
Strength: 5/5
“It is essentially a temperate fruit. It requires chilling below 5°C for a period of 2-3 months and therefore, it is generally grown at an elevation from 500-2000 m in India. Te most optimum temperature range for growth of apple is 15°-20°C. Apple is the fourth major fruit crop of the country, occupying a total area of 2.30 lakh ha with a total production of 13.8 lakh tones. It is grown mainly in Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and Arunachal Pradesh.”
Why relevant

Describes apples as a temperate fruit grown in India (J&K, HP, Uttarakhand, Arunachal) and gives domestic production and area.

How to extend

A student could compare India's domestic production/seasonality (from this) with US apple harvest seasons and known trade flows to judge whether offseason or variety gaps might lead India to import US apples.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > Table 8.6 Direction of India's Import trade (in crore rupees) > p. 89
Strength: 4/5
“• Region: Europe; Col2: 403972; Imports: 640577 • Region: Africa; Col2: 193327; Imports: 368156 • Region: North America; Col2: 195332; Imports: 378041 • Region: Latin America; Col2: 115762; Imports: 161995 • Region: Asia and ASEAN; Col2: 1544520; Imports: 2918577 Source : Economic Survey 2016-17 and 2022-23 India aims to double its share in the international trade within the next five years. It has already started adopting suitable measures such as import liberalisation, reduction in import duties, delicensing and change from process to product patents. Draw a multiple bar diagram to represent the major trading partners. Most of India's foreign trade is carried through sea and air routes.”
Why relevant

Gives that North America is a significant source region in India's import trade (showing substantial import values from North America).

How to extend

Using a world trade map or commodity-specific import data, a student could check whether agricultural/fruit imports from North America include apples or are concentrated in other goods.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > Changing Patterns of the Composition of India's Import > p. 88
Strength: 4/5
“Why does India import edible oil in spite of being an agriculturally rich country? Select five most important and five least important items and represent them by bar diagram. Can you identify some items of imports for which substitutes can be developed in India?: ; Col2: • Based on Table 8.5, few activities may be undertaken: Arrange the items in ascending or descending order and write the names of the first five major items of India's import list of 2021-22. Why does India import edible oil in spite of being an agriculturally rich country? Select five most important and five least important items and represent them by bar diagram.”
Why relevant

Notes that India imports certain agricultural items (example: edible oil) despite being agriculturally rich — showing a pattern that domestic production does not preclude imports.

How to extend

Apply this general rule to apples: even though India produces apples, consider factors (variety, quality, seasonality, price) that could plausibly lead to apple imports from countries like the USA.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > INTERNATIONAL TRADE > p. 46
Strength: 3/5
“India imports raw cashewnuts only to re-export them after they are further reprocessed. India imports crude diamonds and other precious stones only to process them further and re-export them as highly finished fine products at a considerable upward margin. India also imports gold and silver and exporting them in the form of attractive and expensive ornaments. International or foreign trade has played a crucial role in India's economic growth. During the colonial days India used to export almost entirely agricultural raw materials. India's traditional exports consisted of jute, cotton, tea, spices, hides, skins, oil-seeds, especially ground-nut. At present, instead of exporting raw materials, India is exporting jute-packing materials (gunny-bags, linen, and carpets).”
Why relevant

Explains India imports raw agricultural or commodity inputs (e.g., raw cashewnuts, crude diamonds) for processing and re-export — illustrating trade patterns where specific goods are imported for niche purposes.

How to extend

A student could infer that if the US supplies specific apple varieties or processing-grade apples not available in India, India might import them; they could then check commodity-level trade statistics.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 16: Terminology > 16 Terminology > p. 462
Strength: 2/5
“If a country is exporting only apples (price Rs. 120/kg) and importing only oranges (price Rs. 40/kg), then the terms of trade (TOT) is simply the ratio of price of apples to the price of oranges i.e. Rs. 120/ Rs. 40 = 3. So, TOT is a measure of how much imports an economy can get for a unit of exported goods which in this example is 3 times.• Trickle-down effect: When the income of the big corporations and rich people increase then they invest/spend this income in the economy which ultimately reaches to the poor people at the bottom of the pyramid.”
Why relevant

Uses apples as an illustrative traded commodity in explaining 'terms of trade', implying apples are a standard example of internationally traded fruits.

How to extend

Use this conceptual example to motivate checking price/terms differences and market incentives that could prompt India to import apples from higher-price suppliers like the US.

Statement 2
Does Indian law prohibit the import of genetically modified (GM) food into India without approval from the competent authority?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > GM Mustard > p. 343
Strength: 5/5
“• In Oct. 2022, The Genetic Engineering Appraisal Committee (GEAC) constituted under Environment (Protection) Act, 1986 has recommended the environmental release of the genetically modified (GM) mustard variety DMH (Dhara Mustard Hybrid)-11, paving the way for the commercialisation of the country's first GM food crop.• But GEAC nod is not the final approval for commercial release but a step forward. It remains to be seen if the Central Government will accept the GEAC's recommendations or not.• While giving the nod, the GEAC has said that simultaneous field studies will have to be conducted with ICAR on the effect of GM mustard on honeybees and other pollinators• DMH-11 has been shown to deliver 30 per cent higher yields than existing varieties.”
Why relevant

Mentions the Genetic Engineering Appraisal Committee (GEAC) as the body that recommends environmental release of a GM food crop, and that GEAC nod is a step in an approval process.

How to extend

A student could check whether GEAC (or related statutes under the Environment (Protection) Act, 1986) has legal powers over import/entry of GM organisms or if separate import approvals are required.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > 11.8 Genetically Modified (GM) Crops > p. 342
Strength: 4/5
“Though BT Brinjal has passed its field trials, it was not allowed to go for commercial production and a moratorium is placed since 2010, amid strong protest by civil society groups. There is a lobby that strongly opposes the use of GM foods, they claim that certain GM foods can trigger allergic reactions in humans (cotton pickers) and may also be of toxic in nature.”
Why relevant

Notes that Bt brinjal passed field trials but was not allowed commercial production and a moratorium was imposed, indicating regulatory controls and possible government-level blocks on GM crops.

How to extend

One could infer that India exerts regulatory control over GM crops and extend this to investigate whether similar controls apply to imported GM food absent competent-authority approval.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.7 FSS Act 2006 and FSSAI > p. 374
Strength: 5/5
“The Act establishes a single reference point for all matters relating to food safety and standards, by moving from multi-level, multi-departmental control to a single line of command. For the above purpose, the Act establishes an independent statutory authority the Food Safety and Standards Authority of India (FSSAI) with head office at Delhi. FSSAI along with respective State Food Safety Authorities shall enforce the various provisions of the Act. Accordingly, various state governments have set up their own agencies for food and drug administration to implement the provisions under the Act.”
Why relevant

Explains FSSAI is the single statutory authority for food safety and standards and enforces provisions through state authorities.

How to extend

Use this to test whether FSSAI rules or notifications require prior approval/certification for importing novel/GM food products.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > 11.9 Organic Farming > p. 345
Strength: 4/5
“The definition also extends to meat, poultry and dairy products produced without using antibiotics or artificial growth hormones. While this is the generic, universally accepted understanding of organic food, the exact definition varies from country to country. Food Safety and Standards Authority of India (FSSAI) regulates organic foods in India. FSSAI in Nov 2017 published regulations on organic food which regulates manufacture, sale, distribution and import of organic food in India. As a consequence, any food to be sold as 'organic' in India will have to be certified under either of the two prevailing systems. The”
Why relevant

States FSSAI regulates manufacture, sale, distribution and import of organic food and published import regulations, showing FSSAI exercises regulatory control over imports of specific food categories.

How to extend

A student could analogously check whether FSSAI (or another competent authority) has specific import rules for GM food, given its role over other food-import categories.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 9.16 Indian Economy > p. 302
Strength: 3/5
“• In 2016, GM mustard or Dhara Mustard Hybrid-11 (DMH-11) was cleared by GEAC for field trail. However, GEAC has demanded more tests of DMH-11 to allow its commercial cultivation. • "It is for reference that GEAC recommended the commercial release of Bt brinjal in 2007 but it was blocked by the government in 2010". The Biotechnology Regulatory Authority Bill, which envisages creating a regulatory body for uses of biotechnology products including GM organisms, is pending in the Parliament since 2008. Higher crop yields ensures food security. Reduced farm costs and increased farm Can contaminate other fields through cross- pollination. • Col1: Can withstand weather fluctuations and decrease the use of pesticides and herbicides. • Col3: There is a danger of allergens entering into the food chain.”
Why relevant

Notes the Biotechnology Regulatory Authority Bill (to regulate biotech products including GM organisms) has been pending, implying an existing regulatory framework and potential legislative attention to biotech/GM governance.

How to extend

This suggests looking for existing interim rules under other Acts (e.g., Environment (Protection) Act, FSSAI rules) that might currently govern GM food imports pending new legislation.

Pattern takeaway: UPSC tests 'Trade Paradoxes'—items we produce but still import (like Apples or Edible Oil). Regulatory statements with the phrase 'without approval of competent authority' are almost always Correct, as laws rarely impose absolute bans without a licensing loophole.
How you should have studied
  1. [THE VERDICT]: Sitter for the observant; Trap for the book-worm. Statement I is solved by General Awareness (Washington Apples), Statement II by standard Environment notes (GEAC/EPA 1986).
  2. [THE CONCEPTUAL TRIGGER]: Agriculture Trade (Import dependency despite domestic production) + Biosafety Regulation (EPA 1986 & FSS Act 2006).
  3. [THE HORIZONTAL EXPANSION]: GM Regulatory Bodies: GEAC (MoEFCC) for environmental release, RCGM (DBT) for research, FSSAI for food safety. Trade Facts: India's top agri-imports (Vegetable Oils, Pulses, Fresh Fruits). Top Apple sources: Turkey, Italy, Iran, Chile, USA (Washington).
  4. [THE STRATEGIC METACOGNITION]: Do not assume 'High Production = Zero Imports'. India is a top producer of milk, wheat, and fruits, yet imports specific varieties or during off-seasons. Always verify trade bans against current WTO disputes (e.g., India-US tariff issues).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Domestic apple cultivation zones & chilling requirement
💡 The insight

Apple is a temperate fruit requiring winter chilling and is grown mainly in Jammu & Kashmir, Himachal Pradesh, Uttarakhand and Arunachal Pradesh.

High-yield for agriculture and geography questions: explains why apples are region-specific in India and affects domestic supply, seasonal availability and policy on imports. Connects to climate zones, cropping patterns, and state-level agricultural profiles; useful for questions on horticulture policy and regional development.

📚 Reading List :
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 12: Major Crops and Cropping Patterns in India > Apple > p. 60
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 9: Agriculture > Fruits > p. 99
🔗 Anchor: "Does India import apples from the United States of America?"
📌 Adjacent topic to master
S1
👉 India’s fruit production profile and trade implications
💡 The insight

India accounts for a substantial share of world fruit production and leads in several fruit commodities, affecting its import-export dynamics for fruits.

Important for economy and trade questions: helps assess which fruits India may need to import versus those it can export, informs policy discussions on value-addition and agro-processing. Links agriculture statistics with international trade and export promotion strategies.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 9: Agriculture > Fruits > p. 99
  • Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 12: Major Crops and Cropping Patterns in India > Fruit Crops > p. 59
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Key Recommendations: > p. 326
🔗 Anchor: "Does India import apples from the United States of America?"
📌 Adjacent topic to master
S1
👉 Terms of trade and regional direction of imports
💡 The insight

Understanding commodity price relations and the regional composition of imports helps evaluate why a country might import particular agricultural items.

Useful for analysing import decisions and trade policy: links price-relations (terms of trade) with trade partners and import composition, enabling answers on why India imports certain goods and from which regions. Helps connect macro trade data with commodity-level decisions.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 16: Terminology > 16 Terminology > p. 462
  • INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > Table 8.6 Direction of India's Import trade (in crore rupees) > p. 89
🔗 Anchor: "Does India import apples from the United States of America?"
📌 Adjacent topic to master
S2
👉 GEAC recommendations are not final approvals
💡 The insight

GEAC issues environmental-release recommendations for GM crops but its nod does not by itself authorise commercial release; final acceptance rests with the Central Government.

High-yield for UPSC: explains the multi-step regulatory pathway for biotech crop approvals, links biosafety regulation to executive decision-making, and helps answer questions on institutional roles and checks in agricultural biotechnology policy.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > GM Mustard > p. 343
🔗 Anchor: "Does Indian law prohibit the import of genetically modified (GM) food into India..."
📌 Adjacent topic to master
S2
👉 FSSAI as the single statutory food regulator
💡 The insight

FSSAI provides a single reference point for food safety and standards and enforces provisions through state food safety authorities.

Important for UPSC: clarifies the institutional architecture for food regulation and enforcement in India, connects to supply-chain, public health and administrative law topics, and supports answers on regulatory competence for food imports and standards enforcement.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.7 FSS Act 2006 and FSSAI > p. 374
🔗 Anchor: "Does Indian law prohibit the import of genetically modified (GM) food into India..."
📌 Adjacent topic to master
S2
👉 Organic certification and import equivalence rules
💡 The insight

Organic food in India must be certified under NPOP or PGS-India, and imports need not be re-certified if the exporting country's standards are recognised as equivalent to NPOP.

Useful for UPSC: offers a concrete example of how standards equivalence eases trade in food products, links to questions on trade policy, standards harmonisation and import regulation, and helps frame answers on technical barriers to trade and certification regimes.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > 11.9 Organic Farming > p. 346
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > 11.9 Organic Farming > p. 345
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Importance: > p. 311
🔗 Anchor: "Does Indian law prohibit the import of genetically modified (GM) food into India..."
🌑 The Hidden Trap

The 'Next Logical Question' is the jurisdiction split: GEAC (under MoEFCC) approves 'environmental release' (cultivation), but FSSAI (under MoHFW) regulates 'food safety' and imports of GM food. A future statement might swap these ministries.

⚡ Elimination Cheat Code

Apply the 'Global Trade Heuristic': Statement I says 'India does not import...'. In a globalized economy, absolute zero trade is rare unless there are UN sanctions (like North Korea). If you have ever seen a 'Washington' sticker on an apple, Statement I is false. S-I Incorrect = Answer D.

🔗 Mains Connection

Link this to International Relations (WTO): The context for Statement I was the 2023 removal of retaliatory tariffs on US Apples (imposed by India in 2019). This connects Economy (Trade) to IR (India-US Strategic Partnership).

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