NausheenAIR 9 · CSE 2023 · 101 wordsTheir whole copy
Opening · a definition
Balance of Payment is the systematic record of all transactions between residents and non-residents of a fixed time period, usually an year.
Body · points and prose
[Balance of Payment]
|-- [Current Account]
| |-- Visibles
| |-- Invisibles
| |-- Gifts, Remittances
|
|-- [Capital Account]
|-- FII
|-- FDI
|-- External Commercial Borrowings
|-- State
|-- Private
Differences between Capital Account and Current Account
| Current Account | Capital Account |
|---|---|
| → Includes goods services and remittances. | → Includes investments like FDI, FII etc. |
| → Not associated with expertise transfer. | → FDI often comes with expertise |
| → Doesn't require any special instrument. | → It may require special instruments like Promissory notes for FII. |
Steps to balance BoP deficit in India
[Steps]
|-- Investing on renewable energy eg) green Hydrogen mission
|-- Promoting exports by investing in standards of products eg) Organic products
|-- Opening up of sectors under FDI under automatic route
|-- signing long term MoUs or agreements for exports eg) MoU with Mozambique on wheat export
|-- Building up strategic oil reserves eg) Padur, Chicakhole etc.
Close · no separate close
None written.