Balance of Payments Trends & External Sector Stability

India’s Balance of Payments (BoP) position has evolved into a "Fortress Balance Sheet," characterized by manageable Current Account Deficits (CAD) and robust Capital Account surpluses. The external sector is defined by a structural shift where booming Services Exports and record remittances effectively bridge the merchandise trade gap, shielding the economy from global volatility.

Key Stakeholders/Financial Gatekeepers

  • Services Sector: IT, Business Process Management, and Global Capability Centres (GCCs) driving net export surpluses.
  • Foreign Portfolio Investors (FPIs): Global funds increasing allocation to Indian Debt/Equity markets.
  • Exporters: MSMEs and large corporates benefitting from trade settlements in INR (Vostro Accounts).

Strategic Flows & Policy Anchors

  • Services ....
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