Question

The balance of trade of India shows a deficit of ₹ 8000 crores and the value of imports is ₹ 10,000 crores. What is the value of exports?

Options

• ₹ 2000 crores

• ₹ 3000 crores

• ₹ 4000 crores

• ₹ 5000 crores

Answer 1

₹ 2000 crores

Explanation:

Balance of Trade = −₹ 8000 crores (since it is a deficit, it takes a negative sign)

Value of Imports = ₹ 10,000 crores

Balance of Trade = Value of Exports − Value of Imports

−₹ 8000 = Value of Exports − ₹ 10,000

Value of Exports = ₹ 10,000 − ₹ 8000

Value of Exports = ₹ 2,000 crores

The deficit equals imports minus exports, so the other values are inconsistent with the stated deficit.