Balance of Payment: by Group 1

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Balance of Payment

By Group 1

Causes
Ever Expanding Trade Gap: (i) Increase in Import Intensity (ii) Import of Oil (iii) Import of Essential Items (iv) Rising Prices of Imports (v) Deterioration in the Exchange Rate of Rupee 2.Rising Current Account Deficit 3.Deficits on Capital Transactions

Measures for making BOP Favorable Diversification


Trade Development of New Industries Concentrate on selected sectors Concentrating on Frugal engineering skills Incentives related to Trade

Factors impacting BOP


Trade Agreement Trade Policy Currency Exchange Rate Tax, Tariff and Trade Barriers

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