Economy2020
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
- India’s imports of iron and steel, chemicals, fertilisers
- India’s exports of services are more than its imports of
- India suffers from an overall trade/current account
deficit. Select the correct answer using the code given below:
Explanation
The correct option is 1, 3, and 4 only. India's merchandise trade reflects a perennial trade deficit, where imports generally exceed exports, particularly in goods like crude oil and gold, thereby leading to a current account deficit. However, the country maintains a competitive edge in the services sector, where exports consistently surpass imports, reflecting India's strengths in IT and business services. This dynamic illustrates the complexities of India's overall trade balance, characterized by a strengthened services sector amidst challenges in merchandise trade.