Vol: 1, Issue: 1 2011

Page: 059-068

Comparative Analysis of Balance of Payments: Indian Perspective

Kuldeep Singh Rana

Uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items. When all components of the BOP accounts are included they must sum to zero with no overall surplus or deficit. For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counter-balanced in other ways – such as by funds earned from its foreign investments, by running down central bank reserves or by receiving loans from other countries. The balance of payments of a country is a systematic record of all transactions between the residents of a country and the rest of the world carried out in a specific period of time. The present paper scholar tried to focus of concept of BOP and comparative research on Indian balance of payment.