Publication

This brief examines the balance of payment (BOP) estimates released by the Reserve Bank of India for the first six months of the financial year 2008-09 (that is, April-September 2008). The author argues that India's BOP has undergone some significant structural changes in the current year, explains why the reserves declined and claims that the most significant structural development in India's external sector, as reflected in its BOP, is the inability of the capital account to overcome the deficit in the current account.