With reference to ASEAN-India Trade in Goods Agreement (AITIGA) consider the following statements:1.It aims to promote trade and economic cooperation by reducing or eliminating tariffs on services traded between the member countries.2.Recently, India’s trade deficit with ASEAN countries has increased.Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Explanation –

Statement 1 is incorrect. AITIGA agreement covers trade in physical goods and products. It does not apply to trade in services.

Statement 2 is correct. The trade deficit between India and ASEAN countries has widened to $43.57 billion in the last financial year.

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