Comprehension Passage
Directions: Read the passage and answer the questions:
From a rare upward swing this October, India’s goods exports retreated into contraction last month, dipping 2.8% from previous year levels to touch $33.9 billion. Imports dropped 4.33% to $54.5 billion, cooling the merchandise trade deficit to $20.6 billion, almost a third below the record high. Sequentially, the decline in imports was sharp, despite the Commerce Ministry lowering the previous month’s import bill by $1.6 billion from the initial estimate. On the other hand, though exports contracted, they were higher than the previous month's tally, which was the lowest in 12 months, yet denoted a year-on-year uptick unlike currently. Such statistical noise may be hard to listen through, but it is clear that exports have recorded their weakest values in a year, over the last two months. Similarly, the significant dip in imports can be attributed to factors like a decline in discretionary demand for high-value goods such as gems and jewellery and the global dip in prices of key items like petroleum products. Economists expect the deficit to stay range-bound between $20 billion and $25 billion through the remaining months of the year. But it is difficult to be certain — one may recall that imports had previously hit an 11-month high of $60.1 billion before easing over 10% and resurging.
Making sense of such divergences, with a yo-yo effect of sorts every other month, is hazardous, and is exacerbated by significant data corrections that have returned after a few months of relative certainty. A previous month’s goods trade deficit was moderated by nearly three billion dollars, with the overall export-import tally seeing revisions of $5 billion. The magnitude of upward revision in the monthly merchandise trade deficit has averaged around $1.5 billion compared to an average of $0.5 billion in the first quarter of the financial year, a QuantEco research note has flagged. At the risk of repeating the obvious, the government must get a better grip on the data it bases its decisions on. Officials hope for an uptick in exports in the final quarter of the year, citing similar trends in recent years. With the World Trade Organization expecting global trade flows to ________ in the coming year and the US Federal Reserve signalling interest rate cuts that other central banks would take a cue from, global demand may perhaps look up more consistently. But to capture that, India needs to do more to compete with rivals. For instance, a rough government-commissioned study on logistics costs indicates they dropped a little over the past decade. Ongoing infrastructure spends may gradually lower them further, but reducing petroleum prices for users, in tandem with global trends, would boost competitiveness far more effectively.
According to the passage, which of the following statements is incorrect?
1
Exports showed a year-on-year uptick in October.
2
Imports recorded an 11-month high in an earlier month before easing.
3
The average upward revision in the monthly merchandise trade deficit has increased to around $1.5 billion in recent months.
4
The drop in imports in November can be attributed to a decline in demand for high-value goods such as gems and jewellery.
5
Exports have recorded their weakest values in a year, over the last two months.