During FY 2025‑26, India's exports of goods were Rs. 28 lakh crore and imports were Rs. 32 lakh crore. Calculate the balance of trade and state whether it is favorable or unfavorable.
Answer
-4 lakh crore, unfavorable
The correct answer is -4 lakh crore, unfavorable — Hence the balance of trade is −4 lakh crore and is unfavorable.
Step-by-step solution
- Balance of trade = Exports – Imports.
- Substitute the values: lakh crore.
- A negative balance indicates that imports exceed exports.
- Hence the balance of trade is −4 lakh crore and is unfavorable.
Common mistake: Subtracting exports from imports instead of the other way round
Concept tested: Balance of trade calculation
Published · How this solution was prepared and checked
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