In the booklet “India’s Balance of Payments Problem” by Jiban K. Mukhopadhyay, the author initially throws light on the grim situation of India’s balance of payments situation despite continuous planning over many decades. Despite continuous warnings and recommendations from different experts and experts organizations, ministers and senior government officials have often failed to keep up to their words of solving the problem of the Balance of Payments. They have continued with a policy of import-substitution in basic intermediates arid capital goods sectors for attaining objectives of self-reliance. In doing so they were loaded with inefficient and economically non-viable projects in several cases, which ironically were highly import intensive. The author further points out a very important fact that continuous dependence on either concessional or any other type of borrowing do not represent a healthy state of economy. Unless radical steps are urgently taken in the fiscal areas the “internal debt trap” is a more probable danger than·the external debt trap. Also not to forget that India cannot go back to the IMF for repurchases as it already has utilized a lot of that facility and going back to the IMF will not indicate prudent management of the economy. Therefore, the prime solution to the balance of payments problem has to come from exports or an imaginative export policy which is to be included in the economic planning along with encouragement to foreign direct investment.