Balance of trade refers to the difference between the value of a country's exports and the value of its imports during a specific period. If a country's exports exceed its imports, it is said to have a favorable balance of trade. Conversely, if a country's imports exceed its exports, it has a negative balance of trade. In the case of India, the correct answer is option 'C', indicating a negative balance of trade.

Factors contributing to India's negative balance of trade:

1. Imports exceeding exports: India has been importing more goods and services than it exports, leading to a negative balance of trade. This can be attributed to various factors such as a high demand for foreign goods, insufficient domestic production, and reliance on imports for certain products.

2. Trade deficit: India has consistently experienced a trade deficit, meaning that the value of its imports is higher than the value of its exports. This deficit has contributed to the negative balance of trade.

3. Dependence on oil imports: India is heavily dependent on oil imports to meet its energy requirements. Since oil is a significant component of India's import basket, fluctuations in global oil prices can have a significant impact on the balance of trade.

4. Trade barriers: While India has taken steps to liberalize its trade policies, there are still various trade barriers in place that can hinder exports. These include high tariffs, non-tariff barriers, and complex regulatory procedures, which can make it difficult for Indian exporters to compete in the global market.

5. Structural issues: India's negative balance of trade can also be attributed to certain structural issues within the economy. These include a lack of competitiveness in certain sectors, inadequate infrastructure, and limited access to credit for small and medium-sized enterprises.

Implications of a negative balance of trade:

1. Current account deficit: A negative balance of trade contributes to a current account deficit, which means that a country is spending more on imports and foreign payments than it is earning through exports and foreign receipts. This can put pressure on a country's foreign exchange reserves and affect its overall economic stability.

2. Currency depreciation: A negative balance of trade can put downward pressure on a country's currency. As a country imports more than it exports, it requires more foreign currency to pay for those imports. This increased demand for foreign currency can lead to depreciation of the domestic currency.

In conclusion, India's balance of trade is negative, indicating that the value of its imports exceeds the value of its exports. This negative balance of trade can have various implications for the economy and highlights the need for policies that promote exports, reduce dependence on imports, and address structural issues within the economy.