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UPSC 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
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Not attemptedCorrect Answer: (d) 1, 3 and 4 only
India normally runs a merchandise trade deficit, so statement 1 is true. Imports of iron & steel, chemicals, fertilisers and machinery have risen—not fallen—in recent years, so statement 2 is false. India enjoys a surplus in services trade, making statement 3 true. The merchandise deficit outweighs the services surplus, giving an overall current-account deficit; statement 4 is therefore true. Hence only 1, 3 and 4 are correct. ([jagranjosh.com](https://www.jagranjosh.com/articles/upsc-ias-prelims-2020-detailed-analysis-of-gs-paper-i-economics-questions-1602065064-1?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2020 Indian Economy question?▼
The correct answer is option (d): 1, 3 and 4 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2020, GS Paper 1, as Question 52. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.