India has an ____ balance of trade.

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India has an unfavourable balance of trade. The difference in exports and imports of a country is called its balance of trade. Exports are the raw materials and products distributed by a country to other countries, and import refers to the raw materials and products that a country receives from other countries. The trade balance is unfavourable if imports exceed exports, whereas a higher export rate indicates favourable trade. India has had an unfavourable trade balance since its independence. The higher requirements for the Indian industries for raw materials like iron and coal result in increased import rates. Such a trade balance is unfavourable for the economic development of the nation.

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