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

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.
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:

(d)

Core Books/NCERT

Explanation

According to Economic Survey 2019-20. India’s merchandise exports are less than its merchandise imports. However the exports of services are more than its import of services. This results in an overall trade defecit. Meanwhile India’s imports of iron and steel, chemicals, fertilisers and machinery have increased in recent years, falsifying Statement 2. Hence the correct answer is Option D