"The Government had launched Incredible India Campaign to promote tourism in various parts of the country."
Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.

Question

Read the following statements carefully :
Statement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.
Statement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.
In the light of the given statements, choose the correct option from the following :

Answer 1

The Incredible India Campaign aims to attract foreign tourists, consequently boosting foreign exchange earnings. This action benefits India's current account of the Balance of Payment (BOP) by increasing foreign currency inflows derived from tourism services, which are classified as an invisible item in the BOP. The campaign positively impacts foreign exchange reserves, leading to a stronger rupee and an improved international financial standing for India.

"The Government had launched Incredible India Campaign to promote tourism in various parts of the country."
Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.

Show Hint

Solution and Explanation

Top Questions on Balance of payments (BOP)

Questions Asked in CBSE Class XII exam

"The Government had launched Incredible India Campaign to promote tourism in various parts of the country." Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.

Show Hint

Solution and Explanation

Top Questions on Balance of payments (BOP)

Questions Asked in CBSE Class XII exam

"The Government had launched Incredible India Campaign to promote tourism in various parts of the country."
Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.