Question

If India’s imports of goods exceeds its exports of goods, it is referred to as ______.

Options

• Balance of payment deficit

• Fiscal deficit

• Balance of trade deficit

• All of these

Answer 1

If India’s imports of goods exceeds its exports of goods, it is referred to as Balance of trade deficit.

Explanation:

The Balance of Trade (BoT) tracks the net difference specifically between a country’s exports and imports of physical, visible goods. When the total financial value of imported goods exceeds the total value of exported goods, the resulting negative balance is defined as a trade deficit.