Which fiscal condition related to India's trade balance did the Economic Survey 2024 report for FY24?

Correct option is B

The correct option is (B) Narrowed trade deficit.​

Explanation:
According to the Economic Survey 2023-24, India's overall trade deficit decreased from USD 121.6 billion in FY23 to USD 78.1 billion in FY24, indicating a significant narrowing of the trade deficit during that period. ​

Information Booster:

• Merchandise Trade Deficit: Reduced from USD 264.9 billion in FY23 to USD 238.3 billion in FY24.

• Services Trade Surplus: Increased from USD 143.3 billion in FY23 to USD 162.8 billion in FY24.

• Current Account Deficit (CAD): Narrowed to USD 23.2 billion (0.7% of GDP) in FY24 from USD 67 billion (2% of GDP) in FY23.

• Factors Contributing to Improvement:

  • Moderation in merchandise imports.

  • Rising net services exports, particularly in software, travel, and business services.

  • Increase in remittances, reaching a milestone of USD 120 billion in 2023. ​

Trade Surplus: India achieved a trade surplus with 151 countries, accounting for 55.8% of its exports and 16.5% of its imports, totaling USD 72.1 billion. ​

Trade Deficit: Despite surpluses with many nations, India faced a trade deficit with 75 countries, including significant deficits with China and Russia. ​

Foreign Exchange Reserves: As of the end of March 2024, India's foreign exchange reserves were sufficient to cover 11 months of projected imports, indicating a stable external sector.