External Sector and Trade — Prelims Questions

Which of the following statements regarding India's Balance of Payments (BOP) is/are correct? 1. A Current Account Deficit (CAD) is always financed by a surplus in the Capital Account. 2. Foreign Exchange Reserves are a component of the Capital Account. 3. Remittances from non-resident Indians are recorded under the Current Account. Select the correct answer using the code given below:

With reference to India's Foreign Trade Policy (FTP) 2023, consider the following statements: 1. The policy has a fixed end date of March 31, 2028, to ensure stability. 2. It aims to achieve USD 1 trillion in merchandise exports and USD 1 trillion in services exports by 2030. 3. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a key export promotion measure under this policy. Which of the statements given above is/are correct?

Consider the following statements regarding Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in India: 1. FDI is generally considered more volatile than FPI. 2. FPI typically involves acquiring a significant ownership stake and management control in a domestic company. 3. Most sectors in India are open for FDI under the automatic route. Which of the statements given above is/are correct?

What is the primary objective of the Reserve Bank of India's (RBI) intervention in the foreign exchange market?

Which of the following is NOT a component of the Current Account of India's Balance of Payments?