Fall in the global prices of which of the following goods could result into narrowing of trade defic...........

Economic Affairs Balance of Payments

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Fall in the global prices of which of the following goods could result into narrowing of trade deficit for India?

1. Gold

2. Crude oil

3. Pulses

Select the correct answer using the code given below.

1 and 2 only

1 only

2 and 3 only

1, 2 and 3

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Explanation:

Trade deficit is the difference between value of imports and exports of the country.
o Fall of any good which we import more than export would result into narrowing of our trade deficit.
Gold, crude oil and pulses are major item of Import in India's external trade. Hence all the three statements are correct.
o In 2015-16, India's 9% of import is on Gold, 23.1 % of import is on Petroleum. Also, India imported around 6 million tonnes of pulses.