Exhibit I as under provides the data of India's Merchandize Imports (Billion US Dollar) on left axis and Percentage of Food: Fuel, Manufactures and Ores & Metals lmports of India's on the right axis. Similarly; Exhibit 2 provides data of India's Merchandize Exports (Billion US Dollar) on left axis and Percentage exports of Food, Fuel, Manufactures and Ores & Metals on the right axis. Attempt the questions in the context of information provided as under:
A.Trade Balance = Import Minus Exports
b:Trade Deficit If Imports are more than Exports
c:TradeSurplus= If Exports are more than Imports
Exhibit 1: India's Total Merchandize Imports (US Dollar in Billion) and Percentage Imports of Food, Fuel, Manufacturers and Ores and Metals (2012 - 2016)
Exhibit 2: India's Total Merchandize Exports (US Dollar in Billion) and Percentage Exports of Food, Fuel, Manufacturers and Ores and Metals (2012 - 2016)
Assuming India's absolute trade deficit grows by 54 Billion USDollar and exports become 324 Billion US Dollar in the year 2017. What shall be India's absolute imports of food and fuel in 2017 if sectoral composition of food, fuel, manufactures, ores and metals remain· same as that of 2016?
Trade deficit = Import - Export
India' trade deficit in 2016 = 350 - 250 = 100 (USD in billions)
India' trade deficit in 2017 = 100+54 = 154 (USD in billions)
154 = Import - 324
Hence, import = 324+154 = 478 (USD in billions)
India food import percentage in 2017 = India food import percentage in 2016 = 7.5 (Given)
India food import percentage in 2017 = India food import percentage in 2016 = 25 (Given)
India's food export in 2017 = 478*7.5/100 = 35.85 = 36(Approx) (USD in billion)
India's fuel export in 2017 = 478*25/100 = 119.5 (USD in billion)
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