Balance of Payments — Mains Questions

Analyze the major components of India's Balance of Payments and discuss how a persistent Current Account Deficit (CAD) can impact the Indian economy. What policy measures can be adopted to ensure CAD sustainability?

Examine the role of the Reserve Bank of India (RBI) in managing India's Balance of Payments. How do its interventions in the foreign exchange market influence external sector stability?

Discuss the significant shifts in India's Balance of Payments dynamics since the 1991 economic reforms. What are the contemporary challenges and opportunities for India's external sector?