UPSC Previous Year Question | Prelims GS | 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 are more than its imports of services. 4. India suffers from an overall trade/current account deficit.

  1. 1 and 2 only
  2. 2 and 4 only
  3. 3 only
  4. 1, 3 and 4 only

Answer

Correct Answer

1, 3 and 4 only

Explanation

India has a merchandise trade deficit, a services trade surplus, and an overall trade/current account deficit, so statements 1, 3 and 4 are correct. Imports of iron and steel, chemicals, fertilisers and machinery have increased, so statement 2 is wrong.

Topics: current account, economy, external sector & international institutions, india's foreign trade, merchandise & services trade