How can we solve the balance of payments problem?

The problem of balance of payment arises when there is rise in the balance of payment deficit. This problem can be managed when exports start rising and imports start reducing. Policies must be created which will help in stimulating exports. Conditions should be created where people are more interested in purchasing domestic goods rather than importing goods. You can read about the Balance of Payment – Description, Components and Formula in the given link.

Further readings:

  1. Balance of Payment Crisis, 1991 – Causes, Measures to Control it
  2. The Reserve Bank of India: Functions, Composition, Monetary Policy Committee

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