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Question

Consider the following statements

1. High transportation and logistics costs reduce export competitiveness of Indian produce
2. Only 6% of food produced in India is processed

A
1 only
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B
2 only
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C
Both 1 and 2
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D
None of the above
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Solution

The correct option is C Both 1 and 2
India has very low level of food processing (around 6%). It also suffers from high transportation and logistics cost making exports dearer.

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