Trends in Major Balance of Payment Indicators of India

Abstract

BOP is a very comprehensive and systematic monetary record of an economy’s external transactions with the Rest of the World (RoW). For India, trends in BOP assume indomitable importance. In this background, this paper intends to present some exciting trends in valuable pointers of BOP of India. The study shows that the ratio of Imports to GDP in India (M/GDP) has still been higher than that of the Exports to GDP (X/GDP). Increasing CAD over the years especially in 2000s and 2010s also throws on the economic risks that has been facing. The growth in foreign investment albeit slow has turned out to be a positive indicator.