- Autonomous Transactions:
These are transactions that occur due to economic conditions or external factors and do not require any adjustment in the Balance of Payments. They are also known as independent transactions. Examples include exports, imports, foreign investment, and loans.
- Accommodating Transactions:
These transactions occur as a result of adjustments to maintain the Balance of Payments equilibrium. They include borrowing from foreign countries or drawing down reserves. They are required to balance the inflows and outflows from autonomous transactions.
"The Indian economy has witnessed a sharp turnaround during 2023 – 24 with Foreign Direct Investments (FDI) inflows of US $ 70.9 Bn and net Foreign Portfolio Investments (FPI) inflows of US 32.4 Bn."In which account of Balance of Payments will the given variables be entered and why?
State and elaborate, whether the following statements are true/false, with valid arguments
Under the Golden Revolution there was tremendous growth in horticulture, making India the world leader in this field.