AN ANALYSIS OF BALANCE OF TRADE IN INDIAN CONTEXT

Abstract

An important indicator of a nation's economic health is its trade balance, which shows the difference between its import and export values. A trade surplus, also referred to as a positive trade balance, is achieved when a nation exports more products and services than it imports. In contrast, a trade deficit—also referred to as a negative trade balance—occurs when a nation imports more goods than it sells. India has historically imported more products and services than it has exported, resulting in a trade deficit. This has affected the nation's general economic health as well as its foreign exchange reserves and currency value. India's trade deficit is caused by a number of causes, including a high reliance on imports for electronic goods and crude oil.

in addition to a dearth of competition in several sectors of the economy. The Indian government has undertaken measures to mitigate the trade deficit, such as offering incentives and plans to encourage exports and luring foreign direct investment to increase manufacturing and export capabilities. Notwithstanding, certain obstacles persist, such as unpredictable global commerce, volatile commodity prices, and regulatory barriers.

the trade balance in the Indian setting is examined in this research, with particular attention paid to trade patterns, trends, and potential obstacles in the nation. The examination looks at trade policy, imports, exports, and external economic factors as well as how they affect India's trade balance. It also looks at how India's trade balance affects the country's economy, specifically how it affects employment, growth, and overall economic stability. Policymakers are given recommendations on how to improve trade competitiveness and resolve any trade imbalances.