Balance of Payment Crisis in India: What the Figures say

Authors

  •   Jain Mathew Professor and Head, Department of Management Studies, Christ University, Hosur Road, Bangalore - 560029
  •   N. V. Vijaykumar Professor, Welingkar Institute of Management Development & Research, Bangalore - 560 100
  •   Eby Jacob Research Scholar, Christ University, Hosur Road, Bangalore - 560029

DOI:

https://doi.org/10.17010/aijer/2013/v2i5/54526

Keywords:

Balance of Payment

, Current Account, Capital Account, FDI, FPI

F300

, F320

Abstract

The balance of payment (BoP) position of India has been making headlines. There has been a large scale criticism of the general handling of the economic policies of the country and more specifically, the halt in the advancement of the reform process. It is in this backdrop that we felt that it would be relevant to see the issue from a historical perspective. This study, therefore, traces the balance of payment position from 1951 with regard to some variables like exports, imports, current account deficit, and so forth. We have also examined (in detail) the contents of balance of payment under various heads of account - like current account and capital account between the periods from 2001 to 2012. Furthermore, we have endeavored to investigate whether a relationship exists between some of the variables in the balance of payments like the flow of FDI and FPI, private transfers and bank's external liabilities, and between capital and current account inflows.

Downloads

Download data is not yet available.

Downloads

Published

2013-10-01

How to Cite

Mathew, J., Vijaykumar, N. V., & Jacob, E. (2013). Balance of Payment Crisis in India: What the Figures say. Arthshastra Indian Journal of Economics & Research, 2(5), 14–26. https://doi.org/10.17010/aijer/2013/v2i5/54526

Issue

Volume 2, Issue 5, September-October 2013

Section

International Economics and Trade
Crossref
Scopus
Google Scholar
Europe PMC

References

Elitok, S.P. (2008). The relationship between trade, growth and the balance of payments: Application of balance of payments-constrained growth model to the Turkish economy (Ph.D.Dissertation), The University of Utah.

EPW Research Foundation (2005). India's balance of payments: Concepts, compilation and recent scenario. 1950-51 to 2003-04. Retrieved from www.epwrf.res.in/upload/BOP/BoP%20200502.pdf.

Gulzar, S., & Shafi, K. (2011). Balance of payment, exchange rate regime and monetary policy. Interdisciplinary Journal of Contemporary Research in Business, 3 (1), 558-563.

Hill, C.W.L., & Jain, A.K. (2006). International Business: Competing in the global marketplace (6th Ed). New Delhi: Tata McGraw-Hill Publishing Company Limited.

Lokesha, B.K., & Leelavathi, D.S. (2012). Determinants of foreign direct investments-A macro perspective. Indian Journal of Industrial Relations, 47 (3), 459-469.

Ministry of Commerce (2012). Export and Import data. Retrieved from http://commerce.nic.in/ftpa/comgrp.asp and http://commerce.nic.in/ftpa/comgrp.asp.

Ramakrishna, G. (2011). India's trade policy: The impact of economic growth, balance of payments and current account deficit. Journal of International Economics, 2 (1), 4-17.

RBI Bulletin (2013). External sector-India's overall balance of payment. Retrieved from http://www.rbi.org.in/scripts/BS_ViewBulletin.aspx.

Sarode, S. (2012). Effects of FDI on capital account and GDP: Empirical evidence from India. International Journal of Business and Management. 7 (8), 102-107. DOI: 10.5539/ijbm.v7n8p102

Srikanth, M., & Kishore, B. (2012). FDI and Its Impact on Indian Economy. Foreign Trade Review - Quarterly Journal of Indian Institute of Foreign Trade, 46 (4), 3-17.

Virmani, A. (2001). India's 1990-91 crisis: Reforms, myths and paradoxes. Planning Commission Working paper No. 4 /2001-PC December 2001, 1-69. Retrieved from http://planningcommission.gov.in/reports/wrkpapers/wp_cris9091.pdf.