Question

What is meant by favourable balance of trade? Whether India‟s foreign trade is favourable? PLS ANSWER THIS

Answer 1

Favourable trade balance

Unfavourable trade balance

a. Favourable trade balance implies when exports of a country are more than imports, that is the value of exports are more than its value of imports in a particular period of time.

unfavorable If country's imports are more than its exports, that is the value of imports exceeds value of exports, it amounts to unfavourable balance of trade.

b. . favourable exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.

unfavorable If imports and more than exports it amounts to trade deficit.

Answer 2

Answer:

Explanation:

If the value of export is more than value of import is is termed as favourable balance of trade. It is one of the types of balance of trade. A country having favourable balance of trade is a growing nation and is managing the trade very well.

According to me India foreign trade is not favourable as the exports are higher than imports. In years 2020 India has a BOT of -$8.32 billions. India should focus more on exporting of goods than imports.