In terms of economy, the visit by foreign nationals to witness the XIX Commonwealth Games in India amounted to [2011]

In terms of economy, the visit by foreign nationals to witness the XIX Commonwealth Games in India amounted to

In economic terms, when foreign nationals visit India and spend money on accommodation, food, travel, and other services, it leads to an inflow of foreign exchange. This is considered an export of services, as India is providing tourism-related services to non-residents, earning foreign currency in return.

The Balance of Payments (BoP) is a comprehensive record of a country’s economic transactions with the rest of the world over a specified period, usually a year.
It shows the flow of money coming in (positive) and going out (negative) of the country.
It reflects the relative demand for rupees compared to foreign currencies and helps determine the exchange rate of the rupee.
Components of the BoP:
- Current Account: Current account deals with transactions which do not alter Indian residents’ assets or liabilities outside India and foreign resident’s assets or liabilities inside India. It comprises of visible trade (export and import of goods), invisible trade (export and import of services), unilateral transfers (gifts, grants, remittance etc) and investment income (income earned from factors of production such as land, foreign shares, loans etc.).
- Capital Account: The capital account is a record of the inflows and outflows of capital that directly affects a country’s foreign assets and liabilities. Capital account transactions are transactions that alter Indian residents’ assets or liabilities outside India and foreign residents’ assets or liabilities inside India. It comprises of foreign investments like FDI and FPI, Loans by companies and governments and banking capital such as NRI deposits.