Advertisements
Advertisements
प्रश्न
‘Foreign Portfolio Investment (FPI) witnessed a sharp turnaround during 2023-24 with net FPI inflows of US$ 32.4 billion.’
In which sub-account and on which side of the Balance of Payments account the above transaction will be recorded? Give reasons in support of your answer.
थोडक्यात उत्तर
उत्तर
- Foreign Portfolio Investments in India in the fiscal year 2023-24 will be recorded on the credit side of the capital account of the Balance of Payments (BOP) account.
- It is recorded on the credit side, as it results in the inflow of foreign exchange. Furthermore, such transactions are documented in the capital account as they reflect the change in the ownership of financial assets between the residents of a country and rest of the world.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
