2026 · Q43
Consider the following statements:
- 1India runs a current account deficit.
- 2Merchandise imports of India exceed exports.
Which of the statements given above is/are correct?
General KnowledgeIndian Economy
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
India runs a current account deficit because the large merchandise trade deficit is only partly offset by the services surplus and remittances (statement 1 correct). Merchandise imports of India exceed its merchandise exports (statement 2 correct). The answer is (C) Both 1 and 2.