Foreign trade and capital flows

India's foreign trade has shifted from primary exports towards manufactures and services, and its import bill is dominated by energy, gold, electronics and capital goods. Capital flows — foreign direct investment (FDI), portfolio investment (FPI), loans and remittances — finance the current account and bring technology, but portfolio flows are volatile. Worked example: if exports are 400, imports 500, and net invisibles (services plus transfers) are +150, the current account is 400 - 500 + 150 = +50 (surplus) — services and remittances can offset a goods deficit, which is India's typical pattern.