B.P.S.C. TRE-3 July 2024
How did the First World War affect India’s balance of trade?
aDue to a fall in exports, there was a trade deficit✓ Correct
bIt had no significant impact on India’s balance of trade
cDue to an increase in exports, there was a trade surplus
dMore than one of the above
eNone of the above
Explanation
The First World War lasted from 1914 to 1918, and it also affected India’s balance of trade with the world. As a result of this war, due to a decline in exports, India faced a trade deficit.
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