Answer the following questions based on the information given 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$_i$ , Imports$_i$, and Exports$_i$ respectively denote the sales, imports and exports in year $i$.
- Deficit in year $i$, Deficit$_i$ = Imports$_i$ – Exports$_i$.
- Deficit Intensity in year $i$, DI$_i$ = Deficit$_i$ / Sales$_i$.
- Growth rate of deficit intensity in year $i$, GDI$_i$ = (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 |
The highest growth rate in deficit intensity was recorded in
- $1994-95$
- $1995-96$
- $1996-97$
- $1997-98$