RAS question
India's trade deficit with China during April-February FY2025-26 approximately reached which milestone?
Correct answer: (C) $100 billion.
India's trade deficit with China during April-February FY2025-26 crossed the $100 billion mark, reaching about $102 billion.
Explanation
India's trade deficit with China reached the $100 billion milestone because the gap had already been estimated at $102 billion for April-February, even before the fiscal year closed. The cited report says this was above the $91.1 billion deficit in the corresponding period of the previous year and just over the earlier full-year level, which had been slightly below $100 billion. The imbalance persisted despite strong growth in India's exports to China because imports from China rose on a much larger base. In other words, the question is not asking for total trade, exports, or imports; it is asking for the deficit, and the reported April-February figure is closest to $100 billion.
Why the other options are wrong
- (A) $75 billion understates the reported deficit, which had already topped $100 billion and was estimated at about $102 billion for April-February.
- (B) $150 billion overstates the figure; the cited estimate for April-February is about $102 billion, not a number near $150 billion.
- (D) $50 billion is far below the reported milestone because the deficit had crossed the $100 billion mark during April-February.
Concept
This tests the external sector part of Indian Economy: trade balance, bilateral deficits, and how import dependence can widen a deficit even when exports rise. RAS asks such current data points because they connect macroeconomic concepts with live India-specific trends.