MY OPINION TO CORRECT DISEQUILIBRIUM IN INDIA

BOP OF INDIA CAN BE CORRECTED BY THE FOLOWNG

METHODS:-
Rectifying the Balance of Trade: One of the major items which
can adversely affect the balance of payments of India is the
excess of imports over exports. India must try to stimulate
exports or discourage imports or do both. The exports can be
encouraged by bringing down the level of costs in the country.
Devaluation: Devaluation means the lowering of the exchange
rate. This method like devaluation is adopted to cheapen
exports and make imports dearer. Devaluation, thus, raises
exports and lowers imports.
Exchange Control: Exchange control is a very effective and
useful method for correcting adverse balance of payments.
Under this system, the government enforces a complete
monopoly of buying and selling of foreign exchange in the
foreign exchange market. The exporters are required to
surrender their foreign exchange at fixed rates to the central
bank. When imports are restricted to the available foreign
exchange, the problem of adverse balance of payments is then
greatly solved.