This document discusses the components of a country's balance of payments, which is a systematic record of all economic transactions between that country and the rest of the world. It has three main components: the current account, which covers goods and services; the capital account, which covers financial transactions; and the reserve account, which covers transactions with international monetary organizations. Within each component there may be surpluses or deficits, and an errors and omissions item is included to account for reporting discrepancies. India's balance of payments situation improved in the 1990s due to higher earnings from services, more external commercial borrowing, and more foreign direct investment.