Financial Reclassification of India s Balance of Payment

Financial Reclassification of India's Balance of Payments Sunanda Sen To be useful, the balance of payments statement of a country should reveal information which is relevant for policy making. The accounting concept of balance of payments, it is now accepted is both out-dated and unsatisfactory as a tool for analysis of a country's international financial position, 'This paper suggests a new approach to classification of balance of payments. This approach may provide a better indication of a developing country's creditworthiness as also of its vulnerability in its payment relations.