External sector trade balance FDI trends from "summary" of Indian Economy: Performance and Policies by Uma Kapila
The external sector of an economy plays a crucial role in determining its overall performance. One of the key aspects of the external sector is the trade balance, which refers to the difference between a country's exports and imports. A positive trade balance occurs when exports exceed imports, while a negative trade balance occurs when imports exceed exports. Foreign Direct Investment (FDI) is another important component of the external sector. FDI refers to investment made by a foreign company or individual in the economy of another country. FDI can have a significant impact on a country's economic growth and development by bringing in new technologies, creating jobs, and stimulating domestic production. The trends in FDI can provide valuable insights into the attractiveness of a country as an investment destination. Countries that are able to attract high levels of FDI are often seen as having a stable and attractive investme...
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