Concept of Gross Value Added

In January 2015, the MOPSI had released the new series of national accounts, revising the base year from 2004-05 to 2011-12. With this, the GDP at Factor Cost has been replaced by Gross Value Added (GVA). With this change, GDP at market ..

Gross Domestic Product

Economy refers to production, distribution and consumption of goods and services in a geographical region. The inputs to the production process are called factors of production. There are three classical factors of production viz. Land, Labour and Capital. Modern economists ..

Concept of Economic Territory

For the purpose of economic calculations such as GDP, GNP, GVA etc. the concept of economic territory is used in place of political or geographical territory. The Economic territory of India includes the following: Political / geographical boundaries of India ..

Convertibility of Rupee in India

The convertibility of a currency such as Rupee has different meanings in different times. In existing standards, it means that the country’s currency becomes convertible in foreign exchange and vice versa in the market. The definition should be seen in ..

India’s Balance of Payment Position

The account book of the Balance of Payments comprises four accounts viz. Current Account, Capital Account, Errors and Omissions, and Change in Foreign Exchange Reserves. Current Account Under current account of the BoP, transactions are classified into merchandise (exports and ..

Balance of Payment Disequilibrium & Adjustment of BoP

The most important feature of the Balance of Payments Accounts is that it is a double-entry system of accounts: a credit entry in the BOP accounts has a corresponding debit entry elsewhere in the BOP accounts. This implies that for ..

Components of Balance of Payments

Balance of Payments refers to the systematic and summary record of a country’s economic and financial transactions with the rest of the world, over a period of time. In a layman’s language, anything that affects the financial and accounting entries ..

Foreign Trade Policy 2015-20

Export promotion being a constant endeavour of the government, export performance is constantly monitored and export strategy and export policies are formulated. In the Foreign Trade Policy for the years 2015-20 announced in April 2015, the Government spelt out a ..