AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
The student's argument is well-reasoned. Since India is the largest producer of jute goods but only the second-largest exporter, a significant portion of production is consumed domestically. This implies a large domestic market — for example, jute is widely used for packaging, sacks, and other goods within India.
Additionally, the textbook notes that after Partition, three-fourths of jute-growing areas went to Bangladesh, yet mills remained in India, sustaining high domestic production and consumption. Thus, domestic demand logically absorbs the surplus not exported.
Source: Jute Textiles, Chapter 6 — Manufacturing Industries
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