Question

With reference to the international trade of India at present, which of the following statements is/are correct?

1. India's merchandise exports are less than its merchandise imports.

2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.

3. India's exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 4 only

(c) 3 only

(d) 1, 3 and 4 only

Answer 1

Correct option is (d) 1, 3 and 4 only

• Continuously, we are suffering from current account deficits so for statement #4 is correct. Option a and c are eliminated since they don't contain #4.
• Further India's Merchandise/ goods export is less than its goods imports. So, #1 is correct. Hence the answer should be d.