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5.1 BoP - Coggle Diagram

- - - - Goods
    - - Service
      - 1* Income
        
        wages, interest, profit, divident
      - 2* Income
        
        remittance, gift, donation
  - - - NELP(multiple lic, profit share)
        
        HELP(single lic, revenue share)
        
        Open Acreage Licensing Policy (OLAP) - company choose block and bid
      - Sweet/Sour Crude(Low S) + BRENT + WTI
    - - Sovereign Gold Bond Scheme
      - Gold Monetization Scheme
  - - - demarcated area as foreign territory for tax/trade
      - Plan to replace by new law 'Development of Enterprise and Service Hubs(DESH)'
      - IFSC under SEZ act
    - - Read from Notes
  - - - Income terms of trade (ITT) = NTT * QIE (Quantum Index of exports) -> ITT more relevant for India & developing country
- - - - precursor to an FTA/CECA/CEPA
    - - duty reduction on identified products
    - - <FTA + negotiate tariff mainly
        
        Singapore, Malaysia
    - - all allowed + -ve list
    - - FTA, Trade + Investment + IPR + Dispute Resolution etc
        
        SL, Japan, Korea
  - - - Dollar Swap - Bank buy $ from RBI and sell same at end of swap period via auctioning. Done to prevent weakening of ₹
- - - - FPI
        
        <10%, may use participatory notes, Hot Money
        
        Only FPI can buy Bonds(GSec, Pvt Sector Bond/Debenture)
      - FDI
        
        SW & HW > Service VIA Singapore > Mauritius > UAE > USA
        
        prohibited in atomic energy, railway operations (except Metro & infra dev.); Tobacco Products, Real Estate Business, Farm Houses, Chit Funds, Nidhi Companies, Betting Gambling Casino & Lottery;
        
        Sector(Automatic%, Govt%)
        
        Banking-Public(NA, 20), Banking-Pvt(49,<=74), Insurance(74, NA), Satellite(NA, 100%), Print & Social Media(NA, 26), TV & FM Media(NA, 49), REIT(NA, 49), Telecom, Air Transport(49,>49), Defence/Pharma/BioTech(74,>74)
    - - Sovereign, ECB
        
        if uncontrolled -> Debt Overhauling - income generated gone into debt repayment -> default on payment -> foreigner pull out $ -> currency crash
    - - NRI deposit/investment in Bank/Insurance/Pension
  - - - value of (overseas assets owned by a nation - domestic assets owned by foreigners)
        
        -ve : Debtor Nation - USA >...>IND(8th)
    - - domestic assets (owned by foreigners)/value of (overseas assets owned by a nation)
        
        <100 -> India -> lesser foreign assets compared to liability of India towards foreigners