L3/P1: Balance of Payment (BoP) & Current Account Deficit

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Language: Hindi, Topics Covered:
- Brief recap of the previous lectures
- What is balance of payment (BoP)? Definition, methodology.
- How is World’s balance of payment zero?
- How is India’s balance of payment zero? and if so, why did we have a balance of payment crisis in 1991?
- Two components of BoP: current account and capital account
- Components current account balance: visible and invisible part.
- Current Account: Services, income, transfer, gifts donations and remittances
- Concepts: Balance of trade, trade deficit and trade surplus. Major imports and exports of India.
- Calculating current account deficit and current account surplus.
- Difference between FDI and FII
- What is forex reserves? How is it built? What are the components of forex reserves?
Powerpoint available at Mrunal.org/down...
Exam-Utility: UPSC CSAT, CDS, CAPF, Bank, RBI, IBPS, SSC and other competitive exams, IIM, XLRI, MBA interviews and GDPI
Venue: Sardar Patel Institute of Public Administration (SPIPA), Satellite, Ahmedabad, Gujarat,India

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thanks a lot sir

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Sir you teach economics in a very interesting manner. Aapse pdhne pr ye subject bilkul bhi boring nahi lagta. N also, aapke jokes bhi ise aur zyada interesting bnate hai. Thank u sir 😊

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you could say that more easily....why the noodle metaphor?

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She has cleared state services exam

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Grateful!

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jis tarah pyasa apni pyas ko sabdo me nahi kah sakta usi tarah mai apke liye jyada sabdo ka use na ker aapko internally man se thank you kahta hu.aapki subject pe command ki daad deta hu.your subject study style are best.

[@chandawalke6620]

Sir itna lucid explanation to kahi nahi milega... Big salute to you sir.... Words are not enough tp express respect towards u..

[@sultanmpeer3898]

Thanks a lot sir, u r really star for those students who live in village where facilities of coaching is not available
Sir, guide us more & more, similarly for main as well as interview. May Allah give u more strength

[@ThinkingSoul117]

After watching so many videos on RUclips, finally I understood BOP. Thanks Mrunal Sir.

[@Vickyy11001]

19:56 Top Five Remittance Recipient Countries in 2023:
India: Received a staggering $125 billion.
Mexico: Received $67 billion.
China: Received $50 billion.
The Philippines: Received $40 billion.
Egypt: Received $24 billion.

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aapka ek ek word dhyan se sunna padta hai, warna kaafi confusing hojata hai

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This is the era of free education.
Thanks sir from my deep heart

[@piyushkumartanwar2919]

You r real teacher ..others r explainers only in economics

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Thanks mrunal sir.. You are making economics very easier to understand by giving various logical examples.... Great going

[@SushilKumar-sk6kw]

thanks a lot sir
excellent work for those students who can not attend coaching classes and way of teaching is superb.

[@BharCode09]

@52:45 Economy very easy nowadays "Jabse Mrunal Sir aaya"

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Sir U r example of Good Teacher ...

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Sir please restart thses lectures with updated data and current issues

[@Abhishek_key]

31:38 fdi

[@kshitijkumar3335]

1991 ka crisis aaj jake samaj aaya hai sir.... tnku so much

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really well explaines with absolute clarity.presentation is excellent

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Jai Hind 🇮🇳 sir 🧑‍🏫
Thankyou 🧑‍🏫

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Sir aap legendary hain, aapki har PPT me pehle toh mai 5 min baith kar hassi hun !

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THANKYOU SIR

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Thank you sir ji 🙏 for helping us
Bhagwan aapki lambi umar de

[@arunkumar-jg2wr]

Thank you so much Mrunal sir. Apne sb poori economics ko bhut simplify kr dia hai...... apke example bhut hi achhe hein sr.....

[@PrinceROY75525]

Thank sir ❤❤❤

[@giteshaggarwal2867]

Mrunal Sir, Thanks a lot for your economy lectures. these are very helpful. Sir, i have a doubt.
In capital account, foreign loans and external commercial borrowing which we are taking from abroad, it is making our capital account surplus but isn't it a negative thing for the economy as we have to pay it back at some point of time and we are increasing our interest burden on adding these loans on us each year, due to which we are in turn increasing our current account deficit.
thanks

[@Shaanians]

but if we dont get borrowing from foriegn we cant establush new industries and cant produce surplus good.if not surplus goods then there is no increase in export and our deficeit will rise..:)

[@kendriyavidyalayano.3jamna189]

excellent explanation sir

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[@prof.p.m.chougalaeconomics3373]

Thank you Sir

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Today i watch this is very good lecture

[@UncoveredRoutes]

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Hats off sir.. heartily thanks

[@priyankarastogi3258]

That was awesome ....thankyou so much sir

[@anooppaswan7938]

thank u sir.

[@bajrangimonkey]

Sir, what is the meaning of exchange rate weak??

[@chaynikavats9465]

Dear Sir
The concept explained by you regarding Balance of Payment is not understood by me. According to me:
Trade deficit means Import is much higher than export. For the trade deficit to turn into a surplus, imports must fall and exports must rise. One way this adjustment can take place is if the Indian Rupee depreciates, making imports more expensive for Indians and exports cheaper for foreigners. This can be done by withdrawing the Indian Rupee from the FOREX and increasing the US$ supply i.e. Sell the foreign currency and take Indian rupee out from FOREX.
Request Sir or anyone to tell if i am right or wrong?

[@manjeshyadav9915]

What you have mentioned about trade deficit and what has explained in video are one and same. in regard with devaluing rupee, it indeed improves exports and CAD but it comes with consequences. crude oil and gold becomes more costly and any price rise in crude oil adversely affects our economy. our service sector profits goes down , inflation rises due to rise in aggregate demand and investors looses confidence in domestic market. so it is necessary to have elasticity between import and export. devaluing is good but removing currency from Forex is not a good idea for long run. after all we adopted floating currency regime as part of economic reforms

[@kc7470]

Chaynika, the idea proposed by you here about depreciating own currency is being used by Chinese economy but not Indian economy.Because Chinese economy is export based whereas Indian economy is import based.So even by depreciating currency and making goods competitive in foreign market will not favor Indian economy as exports are not that much.

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thanks sir, mrunal sir zindabad

[@kc7470]

Economy made easy

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[@mahimachoudhary4498]

Thankyou sir for such a good and easy explanation.

[@rohittandon2385]

Fall in foreign demand causes disequilibrium how

[@UmeshKumar-zq6el]

Bahut achchha tha

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Can I watch these whole set of videos in 2018 as I am little bit confused about current affairs point of view. Reply please

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Yes... the concepts are very well applies
to current economy status also. Yes for current updates u can check news and gov websites.

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Teaching level awesome 8 years ago
I m in 2023

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[@bajrangimonkey]

Sir what do you mean by exchange rate gettingweak?? Either rupee getting weak or dollar.bcoz here in ncert it is written that gvt undertakes to buy foreign currency when exchange rate become weak.

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[@MukeshGupta-pt2qj]

thank you

[@saravanan515]

Sir, Royalties paid to a foreign company will come under which category. Is it like a Dividend coming under Current Account ?

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Current account expenditure

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[@thevagabond85yt]

30:35 : FII - it's not "Any Public Ltd. company" - it's only for "Public - Listed company" with less than 10% investment. it contradicts last slide. plz correct it.
A FI in public but unlisted company will always be FDI and never FII despite the %age being less than 10.

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tHe_VaGaBonD exactly. Why d hell are those dumbass students sitting there. All they know is to laugh

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Did u cleared prelims?

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Iski ppt kaise open hogi