Have you ever bought an imported perfume or an electronic gadget or a bottle of rare whiskey from a different country? You would have read a news of FIIs selling their India portfolio which affected stock markets. You might also be working in an MNC. There is also a chance that you are investing in US stock exchange by clicking a few buttons on your broking app. 

What do these examples tell us? Where do they get accounted? How to see if we are doing good or not? And what exactly is good and bad in these transactions? 

That’s what we are going to talk about today. These are all a part of balance of payments or BOP. 

Sources and Further Reading:

RBI's Balance of Payments Manual

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