With reference to the international trade of India at present, which of the following statements is/are correct? 1. Indias merchandise exports are less than its merchandise imports. 2. Indias imports of iron and steel, chemicals, fertilisers and machinery

examrobotsa's picture

Submitted by examrobotsa on

Q: (IAS/2020)
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 ye 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 :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,175,61,12,17,32,175

keywords: 

{'exports': [0, 0, 2, 1], 'international trade': [1, 0, 0, 1], 'merchandise exports': [0, 0, 0, 1], 'merchandise imports': [0, 0, 0, 1], 'imports': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'current account deficit': [0, 0, 0, 4]}

The correct answer is d. 1, 3, and 4 only.

Explanation:

Statement 1 is correct. India`s merchandise exports have been consistently lower than its merchandise imports over the years. This has resulted in a trade deficit, which is the difference between the value of exports and imports.

Statement 2 is incorrect. India`s imports of iron and steel, chemicals, fertilizers, and machinery have not decreased in recent years. In fact, India`s imports of these items have been increasing.

Statement 3 is correct. India`s exports of services have consistently been higher than its imports of services. This surplus in services trade has been helping to offset the merchandise trade deficit.

Statement 4 is correct. India has been suffering from an overall trade/current account deficit for many years. The trade deficit is a major factor contributing to the current account deficit, which is the difference between a country`s total exports and total imports of goods and services, including income and transfer payments.