An important source of foreign exchange in India is remittance. The higher end is the remittance from American and Indian IT personnel, which will be known to those who mix with Zhihu. The low-end ones work in Arab countries. These people are treated as slaves in the local area, but many of them earn a lot of dollars. The rest should be foreign capital, right? Although the Indian market is not so good, the financial sector is very open, unlike China.
India is famous for buying weapons, accounting for 13% of the world's arms sales in the past few years, ranking first in the world. Nominally, India is the strongest military power in the South Asian subcontinent, but in fact, India's own basic industries are underdeveloped, India's own weapons are slow, and various accidents continue. India's military purchase is a pit. Although they all claim to be tens of billions, they should be paid in two or three years. Moreover, there are additional clauses, half of which should be replaced by Indian products or a certain proportion of equipment should be purchased in India. Moreover, even if the tender is passed, once the Indians are in conflict, they will put it on hold indefinitely and finally bid under a new name.
Of course, India will also reduce its trade deficit every year, and India has been trying to get rid of it. But India buys weapons and equipment all over the world every year, because the weapons made by Indians themselves are not practical. Moreover, India's direct purchase of weapons can also save research and development costs, absorb the high-tech experience of other countries, and prepare for its own development.