Prelims 2020 · Economy · Question 82
With reference to the international trade of India at present, which of the following statements is/are correct?
- India's merchandise exports are less than its merchandise imports.
- India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
- India's exports of services are more than its imports of services.
- India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
Answer
1, 3 and 4 only
1. Correct. India consistently runs a merchandise trade deficit; goods imports are higher than goods exports.
2. Incorrect. Imports of items like machinery, chemicals, fertilisers, iron and steel have not generally decreased in recent years; many have remained significant or even risen depending on the year.
3. Correct. India usually has a services trade surplus; services exports exceed services imports, led by IT and business services.
4. Correct. India generally faces an overall trade/current account deficit because the merchandise deficit outweighs the services surplus and transfers in many periods.
Hence, the correct statements are 1, 3 and 4 only.