"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

According to the Reserve Bank of India’s (RBI’s) Statistical Supplement released on 19th May, 2023:
“India’s foreign exchange reserves grew for the third straight week and reached near an approximate level of $600 billion.”
The above situation will ----- the ----- side of Balance of Payments account of India.
(Choose the correct alternative to fill in the blanks)

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.