Assuming India’s absolute trade deficit grows by 54 Billion US Dollar and exports become 324 Billion US Dollars in the year 2017. What shall be India’s absolute imports of food and fuel in 2017 if sectoral composition of food, fuel, manufacture, ores and metals remain same as that of 2016?
Explanation:
Absolute Trade Deficit in 2016 = 350 − 250 = 100 Billion USD
∴ New absolute Trade Deficit = 100 + 54 = 154 Billion USD
Since exports in 2017 = 324 Billion USD, imports in 2017 = 324 + 154 = 478 Billion USD.
Imports of Fuel in 2017 = 25% of 478 = 119.5 Billion USD
Hence, option (a).
Note:
You need not check for Food as the options have been eliminated, but you can verify that it comes to approximately 36 Billion USD.
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