Which of the following is a reason for India’s trade deficit?

Correct option is A

The correct answer is: (a) India’s exports are less than its imports
Explanation:
· A trade deficit occurs when a country's imports exceed its exports in value, which leads to outflow of foreign exchange.
Information Booster:
· India has a persistent trade deficit, especially with China.
· Common imports: Crude oil, electronics, gold.
· Common exports: Textiles, software, pharmaceuticals.
· Trade deficit impacts current account balance.
· Managed by policies from the Ministry of Commerce & RBI.
· Part of India’s Balance of Payments (BoP).
Additional Information:
· Equal exports/imports – Balanced trade.
· Higher exports – Trade surplus.
· Stopped importing – Not realistic for global economies.