This book analyses the sustainability of India?s current account and external sector position over the last two decades using Dr. Bimal Jalan?s principles. The objective of this book is to provide a comprehensive analysis of structural adjustment measures on the external sector through Balance of Payments since 1990. Liberalisation of Indian Economy since 90s was extremely successful not only in terms of their GDP also in Capital flows and keeping the Balance of Payments account as favorable. In Regard to this, fifth section in this book investigates the effect of FDI and portfolio flows on exchange rate, exports and sustainable Balance of Payments position of India since 2000. Eminent economists proved that there is an impact of macroeconomic policies on the external sector variables like export and import of goods, services and capital flows via changes in prices, interest rates, gross domestic product and exchange rates. The sixth section in this book attempts to analyse the impact of monetary and fiscal policy actions on the external sector through BOP of India during inwardness and openness using appropriate statistical methods like OLS and other descriptive statistics.