What is Trade Balance? What is its impact? How to make money from this?

What is Trade Balance? What is its impact? 

How to make money from this?

The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.

Balance of Trade

The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time. A positive balance of trade is known as a trade surplus and occurs when value of exports is higher than that of imports; a negative balance of trade is known as a trade deficit or a trade gap.

A higher than expected reading should be taken as positive/bullish for the INR, while a lower than expected reading should be taken as negative/bearish for the INR.

Balance of Trade in India is reported by the Ministry of Commerce and Industry. 

Historically, from 1978 until 2013, India Balance of Trade averaged -114.26 INR Billion reaching an all time high of 13.91 INR Billion in April of 1991 and a record low of -1111.46 INR Billion in October of 2012. 

India had been recording sustained trade deficits due to low exports base and high imports of coal and oil for its energy needs. 

India is leading exporter of petroleum products, gems and jewelry, textiles, engineering goods, chemicals and services. Main trading partners are European Union countries, United States, China and UAE. 

A higher than expected reading should be taken as positive/bullish for the INR, while a lower than expected reading should be taken as negative/bearish for the INR.