Q. 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:

• 1 and 2 only
• 2 and 4 only
• 3 only
• 1, 3 and 4 only

Answer: (d) 1, 3 and 4 only

Notes:

This Question was cancelled by UPSC.

• India is a net exporter in services. Observing the recent trends, there was a surplus of $6.84 billion in June, with exports standing at $16.48 billion and imports at $9.64 billion.
• As per RBI’s data, India’s merchandise exports during April-August 2019-20 was 133 bn USD as compared to 210 bn of imports during the same period.
• India suffers from an overall trade deficit. For instance-

• India’s trade deficit narrowed sharply to USD 6.77 billion in August of 2020 from USD 13.86 billion in the same month last year.
• In 2018, major countries to which India Exported include the United States, United Arab Emirates, China, Hong Kong and Singapore.
• Export of iron and steel products witnessed a sharp rise of more than 100% in June 2020.
• Chemicals include dyes and dye intermediates, organic chemicals, inorganic chemicals, agro-chemicals, cosmetics & toiletries, and castor oil.
  • From April 2019 to January 2020, the export of dyes increased by 9.12% y-o-y to US$ 2.27 billion. Cosmetics and toiletries increased by 5.62%