1. Unfavourable Balance of Trade

India is importing enormous quantity of crude-oil, petroleum, petroleum products, precious stones, gold, silver, copper, machinery, cashewnuts, fertilisers, and mainly exporting agro-based products, engineering goods, commercial automobiles, etc. The balance of trade and balance of payment are still unfavourable as import exceeds the export. India’s balance of payment in the post-reform period (1991) is growing from strength to strength.