After reading this chapter, you should be able to:
■Discuss the fundamentals of the balance of payments of a country
■Understand the different components of the balance-of-payments account
■Explain the concept of equilibrium and disequilibrium in a country’s balance-of-payments
account
■Understand the signifi cance of the offi cial reserves account in balance of payments
accounting
■Be conversant with trends in India’s balance-of-payments account over the years
INDIA’S BALANCE OF PAYMENTS CRISIS
The Indian economy faced a balance of payments crisis in July 2013 as its foreign e
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