Correct answer: (a) USA
Explanation
- A
USA
USA. Option (a) claims that India's trade balance surplus was maximum with the USA in the financial year 2019-20. This is the correct official key because India historically maintains a significant trade surplus with the United States, unlike with many other major economies.
- B
China
China. Option (b) claims China had the maximum trade surplus with India. This is incorrect because India has a massive trade deficit with China, not a surplus.
- C
Japan
Japan. Option (C) claims Japan had the maximum trade surplus with India. This is incorrect because India's bilateral trade with Japan results in a deficit rather than the highest surplus.
- D
United Arab Emirates
United Arab Emirates. Option (d) claims the United Arab Emirates had the maximum trade surplus with India. While India has strong trade ties with the UAE and exports heavily, the trade balance surplus with the USA surpassed others during this specific period.
Summary. Official key is (a) USA. During the financial year 2019-20, India recorded its highest trade balance surplus with the United States among all its trading partners. Aspirants often confuse trade volume with trade surplus, mistakenly assuming countries with large total trade like China also yield a surplus. In reality, India's imports from China vastly exceed its exports, creating a huge deficit. Conversely, strong exports of services and merchandise to the USA ensure a substantial positive trade balance. Therefore, option (a) is the only correct choice.