Balance of Payments (BoP) Framework
The Balance of Payments is a comprehensive account of a country's economic transactions with the rest of the world over a period, comprising the Current Account, Capital Account, and Financial Account.
- Current Account: Goods, services, income, transfers (deficit = net outflow of goods/services value)
- Capital Account: Capital transfers, acquisition/disposal of non-produced, non-financial assets
- Financial Account: FDI, FPI, other investment, reserve assets
- BoP identity: CA + Capital Account + Financial Account = 0 (any deficit must be financed)
- India's structural CA deficit is financed largely through the Financial Account (FDI + FPI inflows); when FPI outflows occur simultaneously with CA widening, rupee pressure intensifies
- Import compression policies (higher duties, licensing curbs) reduce the CA deficit from the goods side
● Tracked since February 16, 2026 · last seen August 02, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief