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Balance of Payments (BoP) of India – UPSC Notes

Balance of Payments (BoP) is a systematic record of all economic transactions between a country and the rest of the world over a specific period/year

Balance of Payments (BoP) of India – UPSC Notes

Balance of Payments (BoP) of India What is Balance of Payments (BoP)? Balance of Payments (BoP) is a systematic record of all economic transactions between a country and the rest of the world over a specific period (usually a year). It provides a comprehensive picture of India's economic interactions with the global economy . 👉 BoP consists of two main accounts: Current Account and Capital Account . Diagram: Structure of India's Balance of Payments Balance of Payments (BoP) │ ┌───────────────┴───────────────┐ │ │ Current Account Capital Account │ │ ├── Merchandise Trade ├── Foreign Direct Investment (FDI) │ (Goods Exports - Imports) ├── Foreign Portfolio Investment (FPI) │ ├── External Commercial Borrowings (ECBs) ├── Services Trade ├── Non-Resident Deposits (NRI Deposits) │ (IT, Touris…

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