CURRENTS ACCOUNT | BALANCE OF PAYMENTS | MINDMAPS | ECONOMY | UPSC CSE скачать в хорошем качестве

CURRENTS ACCOUNT | BALANCE OF PAYMENTS | MINDMAPS | ECONOMY | UPSC CSE

CURRENTS ACCOUNT | BALANCE OF PAYMENTS | MINDMAPS | ECONOMY | UPSC CSE The Nation's Bank Statement! 🌍 In this mindmap video for UPSC CSE, we decode the **Balance of Payments (BoP)**, focusing specifically on the **Current Account**—the most critical indicator of India's trade health. We break down the technical differences between **Visible and Invisible Trade**, why India almost always has a Trade Deficit but survives because of Remittances, and how exactly we finance the **Current Account Deficit (CAD)**. [attachment_0](attachment) 🌍 *Video Mindmap: Current Account (BoP)* ► *1. What is Balance of Payments (BoP)?* • The comprehensive ledger of all economic transactions between the residents of a country and the rest of the world over one financial year. • *Rule of Thumb:* Inflow of Forex = Credit (+). Outflow of Forex = Debit (-). ► *2. The Two Main Accounts* • *Current Account:* Tracks the "day-to-day" flow of trade and income. (Does not create future liabilities). • *Capital Account:* Tracks investments and loans (FDI, FPI, ECBs). (Creates future assets/liabilities). ► *3. Components of the Current Account (High Yield)* • *A. Visible Trade (Goods):* Export and Import of physical, tangible items (e.g., Crude Oil, Electronics, Pharmaceuticals). • Balance of Trade (BoT): Export of Goods minus Import of Goods. (India usually runs a huge deficit here). 📉 • *B. Invisible Trade (The 3 Pillars):* • *1. Services:* IT services, BPO, Tourism, Shipping. (India runs a massive surplus here). 💻 • *2. Income (Primary):* Profits, interests, and dividends earned or paid on foreign investments. • *3. Transfers (Secondary):* Unilateral (one-way) payments like **Remittances**, gifts, and foreign aid. (India is the world's highest recipient of remittances). 💸 [attachment_1](attachment) ► *4. The "Invisibles" Trap* • UPSC Warning: Do not confuse "Invisibles" with just "Services". • Invisibles = Services + Income + Transfers. ► *5. Current Account Deficit (CAD)* • Happens when Total Imports (Goods + Invisibles) less than Total Exports (Goods + Invisibles). • *The Balancing Act:* A CAD must be financed by a surplus in the Capital Account (e.g., bringing in more FDI or taking external loans) or by depleting the RBI's Forex Reserves. This video secures those tricky 2-statement questions on the External Sector! 🔔 *Subscribe* for the next video on The Capital Account (FDI, FPI & ECBs)! #BalanceOfPayments #CurrentAccountDeficit #VisibleAndInvisibleTrade #BalanceOfTrade #Remittances #UPSC #EconomyConcepts #ForexReserves #CapitalAccount #IndianEconomy