Study on Factors that affect the Indian Balance of Payments-A Methodological Overview and Thematic Review

The paper studies and tries to identify thedemand and supply function of the Indian currency which has seen tremendous ups and downs. India being the highest importer of gold has tried to reduce the vast current account gap of close to $5.2 billion in the year 2013–14. The paper analyzes the theoretical background on the reasons behind current account deficit and how it has been worked upon through devaluation. It primarily focuses on the major macroeconomic factors that affect India's Balance of Paymentswhich also affects its international economic ranking. The methodology used in this research paper was secondary research where different existing papers on the issue was analyzed and their findings were taken note of. Once the research papers wereanalyzed, a relationship was established between the major themes which were identified in the paper analyzed. The major themes analyzed Economics, econometrics andfinancewasfound tobethetop theme, followedby social sciences, thethirdthemethatemergedinthe research papers was business managementand accountingand the last themewas arts andhumanities. The study also exhibits the limitations of these research papers which can be minimized ahead.