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

APEDIA

UPSC Prelims

2020 • 04 Oct, 2020 • Paper-1

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:

Correct Answer

See Explanation

Official Evaluation Status: The Union Public Service Commission (UPSC) officially dropped this specific question from the final evaluation, rendering all given ......

💡 Analysis & Explanation

Official Evaluation Status ▼

The Union Public Service Commission (UPSC) officially dropped this specific question from the final evaluation, rendering all given options technically moot for scoring purposes.

Data Ambiguity Breakdown ▼

The question relied heavily on dynamic economic data subject to rapid fluctuation ("at present" and "recent years"). While it is a long-standing historical fact that India runs a consistent merchandise trade deficit (Statement 1) and a robust services trade surplus (Statement 3), the trends for specific commodity imports like steel and chemicals (Statement 2) fluctuate sharply year-on-year.

Current Account Deficit Nuance ▼

Similarly, while India usually runs an overall current account deficit (Statement 4), there are occasional quarters of surplus (like during the pandemic). The rigid phrasing across multiple volatile metrics led to conflicting statistical interpretations among available government economic surveys.

Conclusion ▼

Due to complex statistical ambiguities, no definitive, foolproof answer was validated by the examining body.

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