balance of payment

1. BALANCE OF PAYMENT.
In INDIA

2. Balance of payments can
be simply referred to as
the money which flows
into and out of the
economy.

3. INDIA CHINA
EXPORTS
IMPORTS
MONEY COMES IN
MONEY GOES OUT

4. INFLOW OF MONEY ARE CREDITS
OUTFLOW OF MONEY ARE DEBITS

5. BUYING
PRODUCT COMES IN
SELLING
MONEY COMES IN
WE CAN EXPLAIN IT ON PERSONAL
TERMS AS -
 IF WE BUY SOMETHING THE PRODUCT
COMES TO US BUT OUR MONEY GOES
OUT THIS IS A DEBIT TO US.
 IF WE SELL THE SAME PRODUCT TO
SOME OTHER PERSON THE PRODUCT
GOES OUT AND MONEY COMES IN
THIS IS A CREDIT TO US.
DEBIT
CREDIT

6. BALANCE OF PAYMENT
….
THREE MAIN PARTS OF BOP
CURRENT ACCOUNT
CAPITAL / FINANCIAL
ACCOUNT
OFFICIAL RESERVES

7. CURRENT ACCOUNT
 NET EXPORTS - (OVERALL EXPORTS OF
GOODS AND SERVICES) IT COMPRISES OF
80-90% OF CURRENT ACCOUNT.
 NET FOREIGN INCOME – IT INCLUDES ALL
THE ASSETS OF THE COUNTRY AS WELL AS
FOREIGN INVESTMENT AND EARNINGS
FROM THE FOREIGN COMPANIES.
 FOREIGN AID – IT INCLUDES THE MONEY
WHICH A WORKER SENDS TO THEIR
HOMELAND.

8. FINANCIAL ACCOUNT
 REAL ASSETS - IT INCLUDES ALL THE
TANGIBLE ASSETS OF THE COUNTRY
SUCH AS LAND BUILDING
MACHINERY FACTORY ETC.
 FINAANCIAL ASSETS – IT INCLUDES
ASSETS SUCH AS STOCKS ,
BONDS SHARES ETC.

9. CURRENT
ACCOUNT
FINANCIAL
ACCOUNT

10. BUYING
PRODUCT COMES IN
CURRENT ACCOUNT INCLUDES OF ALL THOSE ASSETS WHO GO TO
WHO BOUGHT THEM OR WHO NEEDE THEM.

11. MONEY GOES OUT
ASSET DOES NOT
COME IN
FINANCIAL ACCOUNT INCLUDES THE ASSETS WHICH REMAIN ON THE
SAME PLACE WHERE THEY WERE BOUGHT.
INDIA
FACTORY BOUGHT
IN CHINA

12. HOPE YOU GUYS ENJOYED THE
SESSION.
THIS WAS AN OVERVIEW OF BALANCE OF PAYMENT IN SHORT.

13. THANK YOU FOR
YOUR
ATTENTION

14. credits
AAKASH SHARMA
NEHA BAGUL
ROSHAN KADAYAT
NIKITA YADAV
POONAM YADAV
NEELU JAISWAL
SHIVAM TIWARI
MAGHA DEVENDRA