Question

State the meaning of autonomous items, under Balance of Payments of India, with the help of an example. 

Answer 1

1. Autonomous Items These trades are performed for profit and are unaffected by the state of the BoP.
2. They include transactions such as foreign investments and official reserves.
3. For example, if a foreign business decides to invest in India, it is an autonomous item because their decision is not influenced by India's economy.