Balance of Payments

India’s Balance of Payments (BOP) is a comprehensive record of all economic transactions between India and the rest of the world. It includes the inflows and outflows of goods, services, income, and capital, helping to track the country’s foreign trade and its financial relationship with other nations. The BOP is a vital indicator of a country’s economic health and its ability to meet its international obligations.

The BOP is divided into three primary components: the current account, the capital account, and the financial account.

1. Current Account: The current account records the trade in goods and services, as well as income flows such as wages, dividends, and interest payments. It reflects the balance between a country's exports and imports. For India, the trade balance has traditionally been negative, meaning the _________ _______ __________ _______ ___ ________ ______ ___ ________ ______ _________.
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