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our country has allways been a trade deficit country. As a result of new economic policy the net invisibles share of the current account has been increasing steadily which results in comparitively a better current account deficit (i.e current account deficit is reduced considerably). Similarly the net balance of capital account has allways been surplus due to the net FDI inflows, FIIs etc.. the deficit in current account has been almost overcome by the surplus in capital account and which resulted in a steady accumulation of foreign exchange reserves. At present our F E reserves are at US$301 billions. It shows the impact of new economic policy on our country's balance of payments.

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Q: Impact of new economic policy on balance of payments in India?
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