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
|
In $1997-98$ the total cost of raw materials is estimated as $50\%$ of sales of that year. The turnover of Gross fixed assets, defined as the ratio of sales to Gross fixed assets, in $1997-98$ is, approximately
- $3.3$
- $4.3$
- $0.33$
- not possible to determine