Is it true that India has a favourable balance of trade?

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True

False

answer is B.

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Detailed Solution

The above statement is false.
A favourable balance of trade is a term used to indicate that a country's exports are more than its imports. Such a trade balance is favourable for the economic development of the nation. The trade balance is said to be unfavourable if imports exceed exports. It is the case in India, where the country imports more than it exports. The balance in the nation's trade indicates a country's position amongst the world countries and the commercial relationship of countries. India's trade balance has been negative since the import of petroleum and petroleum products exceeds the export of agricultural and industrial products.
The correct statement would be that India hasn't had a favourable trade balance.

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