Directions for the next 4 questions: Answer these questions based on the table below:
The table shows trends in external transactions of Indian corporate sector during the period 1993-94 to 1997-98. In addition, following definitions hold good:
Sales, Imports, and Exports, respectively denote the sales, imports and exports in year i.
Deficit in year I, Deficit1 = Imports - Exports
Deficit Intensity in year I, DI = Deficit/Sales
Growth rate of deficit intensity in year I, GDI = \( \frac{DI_i - DI_{i-1}}{DI_{i-1}} \)
Further, note that all imports are classified as either raw material or capital goods.
Trends in External Transactions of Indian Corporate Sector (All figures in %)
| Year | 1997-98 | 1996-97 | 1995-96 | 1994-95 | 1993-94 |
|---|
| Export Intensity* | 9.2 | 8.2 | 7.9 | 7.5 | 7.3 |
| Import Intensity* | 14.2 | 16.2 | 15.5 | 13.8 | 12.4 |
| Imported raw material/total cost of raw material | 20.2 | 19.2 | 17.6 | 16.3 | 16 |
| Imported capital goods/Gross fixed assets | 17.6 | 9.8 | 11.8 | 16.3 | 19.5 |
*Ratio of exports (or imports) to sales