Consider the following statements:
1. India runs a current account deficit.
2. Merchandise imports of India exceed exports.
Which of the statements given above is/are correct?
Both 1 and 2
India's merchandise (goods) imports have consistently and substantially exceeded its exports for decades, resulting in a chronic merchandise trade deficit, so statement 2 is correct. India also typically runs an overall current account deficit, since the goods trade deficit is only partly offset by a services trade surplus and remittance inflows, so statement 1 is correct too. Hence both statements are correct.
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