India's International Trade Profile

India historically runs a structural merchandise trade deficit, meaning its merchandise imports exceed exports (Statement 1 is correct). However, India runs a consistent surplus in the services trade (Statement 3 is correct). Despite the services surplus, the massive merchandise deficit usually pulls the overall current account into a deficit (Statement 4 is correct). Imports of bulk capital goods like chemicals, machinery, and fertilizers generally show an increasing or fluctuating trend driven by domestic demand, not a structural decrease (Statement 2 is incorrect). > One-line conceptual takeaway: India's Balance of Payments is characterized by a strong services surplus that partially offsets a massive merchandise trade deficit. Answer: (d).