Paper I · 6 Indian Economy & Planning · 6.4.1 External sector

6.4.1.1 Balance of payments: current and capital accounts, CAD and India's BoP

The balance of payments records every economic transaction between residents of India and the rest of the world in a year; the current account deficit (CAD) shows how much of the country's spending abroad is financed by foreign capital.

  • APPSC Paper I · Paper I
  • Advanced level
  • 7 min read
  • Full course

Key terms

  • balance of payments
  • current account
  • capital account
  • financial account
  • BPM6
  • current account deficit
  • trade balance
  • invisibles
  • autonomous transactions
  • accommodating transactions

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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