BOP crises in india

BALANCE OF PAYMENT, which was held from 1985 to the ends of 1990. it was a serious economic crises. central bank refused for new credits and forgien exchange reserve had reduced that india could barely finance three week's worth of imports. India had to airlift its gold reserves to pledge it with IMF for a loan.
                                  balance of payment is the sheet of recordof monetary transactions between a country and rest of the world.its include payment for exports and imports of goods, services, fincial transactions. sources of fund, such as exports or reciepts of loan and investment recorded as positive or surplus item, and use of fund,such as imports or to invest in forgien countries recorded as negative or deficit items. When all components of the BOP sheet are included it must balance – that is, it must sum to zero – there can be no overall surplus or deficit.

    BOP = CURRENT ACCOUNT - CAPITAL ACCOUNT +/- BALANCING ITEMS

The current account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payment  (such as foreign aid). "capital account" is used with a narrower meaning by the imf and affiliated sources
Whereas the current account reflects a nation's net income , the capital account reflects net change in national ownership of assets.