Direction (Qs.1 to 8): In the following passage, some phrases have been left out, each of which is indicated by a number. Find the suitable phrase from the options given against each number and fill up the blanks with appropriate phrases to make the paragraph meaningfully complete.

International trade is expected to slow down both internationally and domestically according to a report by the Confederation of Indian Industry. The report titled ‘India’s Exports: Trends, Challenges and Future Strategy’, said …(1)… to an increase in protectionism across the world, as the ongoing US-China trade war shows. “Also there has been a slowdown in growth in the EU region. Additionally, …(2)…, the appellate body of the WTO has only one remaining member.

These actions together have resulted in a slowdown of international trade,” the report said.
The report said that …(3)… the domestic capacity at the present, and it was also negatively impacting plans for increasing the capabilities in domestic industries and augmenting capacity. Iron and steel, non-ferrous metals, chemicals and petrochemicals are among …(4)… issues.

The report also noted that there is no clarity on import of intermediates. “Industry is aware that a number of imports are used as intermediates and value addition is done in India. However, there is no clarity on how …(5)… because the domestic capacity is lacking, versus cost competitiveness.” In addition, India has lost its preferential market access in two of its largest export destinations — the US and EU.

India has …(6)… it used to export to the EU through the EU’s GSP programme. This has impacted its textile exports. Also, as on June 2019, the US has …(7)… to India. While in terms of percentage of trade volume this will be small, in terms of total trade, it is potentially around $ 5 billion …(8)… retaliatory tariffs are only on products worth a few million dollars, the report said. Among its recommendations, the CII suggested developing new schemes to help diversify export markets and products.