Trade Specialisation- An Encounter to International Trade Threats

India’s balance-of-payments (BoP) position improved dramatically in 2013-14, particularly in the last three quarters. This owed in large part to measures taken by the government and the Reserve Bank of India (RBI) and in some part to the overall macroeconomic slowdown that fed into the external sector. Current account deficit (CAD) declined sharply from a record high of US $ 88.2 billion (4.7 per cent of gross domestic product [GDP]) in 2012-13 to US$32.4 billion (1.7 per cent of GDP) in 2013-142. Even though the balance of payment of India is improving still India has negative balance of payment that means the export of India is always less than the imports. It has led the researcher to find out measures to improve the balance of payment as well as to change the negative trend in the balance of payment. In this paper the researcher made an attempt to analyse how for trade specialization of India helps India to encounter the threat, “negative balance of payment”