INDIA’S TRADE DEFICIT WIDENS IN MAY 2019 TO $15.36 BN.

Prelims level : Indian Economy [GS3A] Mains level :
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What is Trade Deficit?

  • It is a situation in a country’s economy where its Imports Exceed Its Exports.
  • Such a situation leads to the outflow of domestic currency to the foreign markets. It is otherwise referred to as negative Balance of Trade.

Trade Deficit = Imports – Exports:

  • The major items which saw an increase in exports are

1. Electronic Goods
2. Organic and Inorganic chemicals
3. Readymade goods of all textiles.

  • The segments that saw strong growth in exports include Pulses and Gold. Petroleum products are the major import commodity in India followed by Precious stones and Metals.
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