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Qts 1 Explain Current Account
Under the current account transactions are classified into merchandise (exports and imports) and invisibles.
Qts 2 Explain Capital Account
Under capital account, capital inflows can be classified by instruments (debt/equity) and maturity (short/long-term). The main component of capital account include foreign investment, loans and banking capital.
Qts 3 Explain Non-Debt Liabilities
Includes FDI and Portfolio Investment comprising of FIIS, ADRs/GDRs
Debt Liabilities :Includes External assistance, External Commercial Borrowings (ECBs), trade credit and banking capital (NRIs deposits).
Qts4 Explain Foreign Exchange Reserves in India
It includes: Foreign Currency Assets (FCAs); Gold Stock of RBI; Special Drawing Rights (SDRs); and Reserve Tranche Position (RTP) in the IMF.
Qts 5 Explain Special Economic Zone (SEZ)
A Special Economic Zone (SEZ) is a geographical region that has economic and other laws that are more free-market oriented than a country's typical national laws. Asia's first Export Processing Zone (EPZ) was set-up in Kandla, India in 1965. The first SEZ policy was announced in April, 2000.
To attract foreign investment in India, SEZ Act, 2005 was enacted with effec from 10th February, 2005.
Qts 6 Explain Foreign Direct Invest (FDI)
FDI is a type of investment that involves the injection of foreign funds into an enterprises that operates in a different country of origin from the investor.
FDI occurs when a company invests in a business that is located in another country and it is investing not less than 10% of shares belonging to the foreign company.
Qts 7 Explain FII (Foreign Institutional Investment). Foreign portfolio investment occurs, when foreign investment in the form of shares, equities and bonds, is made by a foreign company.
The three main institutions involved in FQI/FII:
(I)The Foreign Investment Promotion Board (FIPB)
(II)The foreign Implementation Authority (FIIA) and
(III)The Secretariat for Industrial Assistance (SIA)...
Activities/sectors not opened to private sector, viz railways and atomic energy,