Question

Question 1:

Table 1. India’s trade

Years	Exports		Imports		Balance of trade ($millions)
	$millions	% Growth	$millions	% Growth
2012	289,562	N/A	488,975	N/A	-199,413
2013	336,609		466,044		-129,435
2014	317,542		459,368		-141,826
2015	264,378		390,744		-126,366
2016	260,324		356,704		-96,380

Table 2. India’s trading partners (2016)

Export trading partners			Import trading partners
Countries	$millions	%	Countries	$millions	%
1. United States	41,992	16.1	1. China	60,483	16.9
2. Hong Kong, China	13,209	5.1	2. United States	20,395	5.7
3. China	8,916	3.4	3. Saudi Arabia	18,461	5.2
4. United Kingdom	8,565	3.3	4. Switzerland	14,855	4.2
All others	187,641	72.1	All others	242,509	68
Total	260,323	100.0	Total	356,703	100.0

In seven to ten sentences, discuss what the data in both tables tells you. For your discussion, you are free to focus on the data that you can effectively explain.

Answer 1

The table 1 as per the question shows yearly data of how much India has exported and imported and its Balance of trade which means that how much is the difference in Exports and Imports.

so analysing table 1, We can see that the Balance of trade decreases on year on year basis as the imports turn positive from being negative and we can see that exports have taken a decline. so if the trend continues it might happen that the Balance of trade turns from surplus to deficit to which we will call Current Account Deficit which will makes the Capital Accounts Surplus for India because of the borrowings will make to pay of the imports.

Table 2 shows the bifurcation of exports, as to which all countries India primarily deals with, we can see that India is major exporter to USA (holding 16.1%) and major importer of China (holding 17% approximately).