Balance of payments
In one line: The balance of payments (BoP) is the record of all economic transactions between residents of a country and the rest of the world over a period.
The two accounts
The current account covers goods, services, primary income (interest, dividends, wages) and secondary income (transfers such as remittances). The capital and financial account covers foreign direct investment, portfolio investment, loans such as external commercial borrowings, banking capital and NRI deposits.
How it balances
If the current account deficit is larger than net capital inflows, the overall BoP is in deficit and reserves fall; if inflows are larger, reserves rise. In April-June 2026, a $4.2 billion current account deficit and a $3.9 billion net capital outflow produced an $8.1 billion BoP deficit.
Who publishes it
The Reserve Bank of India releases BoP data every quarter.
Where to go next
- Current account deficit
- Foreign exchange reserves
Balance of payments in the news
- Goods exports jump 23% to $44.4 billion in September 2026 as the trade deficit narrows 16 October 2026
Where goods and services trade fit in the national accounts.
- India's current account deficit widens to $4.2 billion in April-June 2026 2 September 2026
the ledger of all of India's transactions with the world
Previous-year questions on this
- 2019 · GS3 · 10 marks Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.
- 2018 · GS3 · 15 marks How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?
- 2017 · GS3 · 10 marks Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than…
- 2023 · Prelims Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken…
- 2022 · Prelims With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is…
- 2019 · Prelims Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee? (a) Curbing imports of non-essential goods and promoting exports (b) Encouraging…
- 2014 · Prelims With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights…