Concept:Free Trade Agreements (FTAs) aim to boost exports by reducing trade barriers, but success depends on multiple factors like tariffs, regulations, and infrastructure.
Explanation:Export growth under FTAs depends directly on the extent of tariff reduction compared to MFN tariffs – lower tariffs make Indian goods cheaper and more competitive. (Statement 1 is correct.)
Relaxation in rules of origin can help more products qualify for FTA benefits, but it is not a primary determinant of export growth. (Statement 2 is not considered correct here.)
Relaxation in sanitary and phytosanitary measures reduces barriers for agricultural and food exports, thus boosting trade. (Statement 3 is correct.)
The level of infrastructure in India—efficient ports, roads, and logistics—lowers export costs and time, enhancing competitiveness. (Statement 4 is correct.)
Income levels in FTA partner nations affect demand, but this is an external market condition, not a direct factor under the FTA terms. (Statement 5 is not considered correct here.)
Therefore, the factors that directly influence export growth under FTAs are tariff reduction, SPS relaxation, and infrastructure.
Answer:A. 1, 3 and 4 only