As far as Indian BOP is concerned, over the years generally balance of trade indicated deficit while balance of services remained in services. Main reason being imports of India for the visible items such as crude oil and gold far exceed the exports by India but on services account India being known for skilled force rendering services abroad and being IT hub, net services stood in surplus and similarly private transfer payments in the form remittances usually indicate surplus. However, surplus in BOP does not always guarantee the prosperity and likewise deficit does not always signals danger towards the solvency of a nation. Surplus on current account and favourable balance of payment may be on account of massive foreign debt and unprecedented private capital inflows. Thus, favourable BOP may eventually become fatal if the reasons for surplus not carefully considered by authorities and rather become careless in managing BOP. Similarly, BOP deficit cannot be taken as threat to the domestic economy if it is due to huge amount of financial aid to other countries and capital outflows but otherwise continuous BOP deficit may eventually lead to a critical situation such as BOP crisis. Thus, BOP analysis should be performed carefully and results of analysis should be critically evaluated to take appropriate measures to save the domestic economy at the global level.