In the context of India's Balance of Payments (BO

The Current Account of the Balance of Payments primarily includes transactions involving goods, services, primary income and secondary income. The major components are: 1. Merchandise Trade • Exports of goods • Imports of goods 2. Services • Information technology services • Tourism • Transportation • Financial services • Communication and business services 3. Primary Income • Interest • Dividends • Profits • Compensation of employees 4. Secondary Income or Unilateral Transfers • Personal remittances • Gifts • Certain grants and transfers Personal remittances received from Indians working overseas are therefore recorded under secondary income in the Current Account. By contrast, transactions such as FDI and external borrowings are recorded in the financial account of the Balance of Payments. Hence, option (C) is correct.