• Dr. J. Gayathiri

This study critically examines the relationship between fiscal policy and India's Balance of Payments (BoP) over a period spanning from 2014 to 2026. It first evaluates the impact of key fiscal policy measures enacted between 2014 and 2024 on both the current and capital accounts, highlighting the trends and structural shifts observed during this period. The research also incorporates an analysis of the 2024–25 tax reforms, examining their immediate effects on India's external sector, particularly through the lens of the current year’s BoP data. Building on this, the study investigates the potential effectiveness of the 2025–26 Union Budget tax reforms in addressing persistent external sector challenges, such as trade imbalances and capital flow volatility. Additionally, the study assesses the role of crucial BoP components—namely services exports, remittances, and the trade deficit—in shaping India's external position under varying fiscal regimes. The analysis draws on empirical data and policy evaluation to provide insights into the interplay between domestic fiscal strategies and external sector stability, with implications for macroeconomic policy formulation.

Fiscal Policy, Balance of Payments, Tax Reforms, Trade Imbalance, Capital Flows.

"The Effectiveness of Fiscal Policy Managing the India's Bop: Can 2025-2026 Tax Reforms make a difference?", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 5, page no.c209-c213, May-2025, Available :http://www.jetir.org/papers/JETIR2505223.pdf

"The Effectiveness of Fiscal Policy Managing the India's Bop: Can 2025-2026 Tax Reforms make a difference?", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 5, page no. ppc209-c213, May-2025, Available at : http://www.jetir.org/papers/JETIR2505223.pdf