What will be the following effect …
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Posted by Bhumika Choyal 4 years, 11 months ago
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Meghna Thapar 4 years, 11 months ago
(i) ‘Make in India' will increase supply (inflow) of foreign exchange in India causing improvement in the balance of payments position. (ii) Import of pulses will lead to outflow of foreign exchange from the country causing adverse effect on balance of payment position.
(a) "Make in India" programme will have favourable effect on balance of payments. Because: (i) It will reduce the imports of commodities which will be made in India. Ultimately, we will be in the position to export. This will make BOP favourable. (ii) It will help in import substitution. (b) Imports of pulses: It will make balance of payments adverse. Because of imports we will have to make payments.
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