This paper studies the foreign trade and Balance of Payment of India. Balance of payment is an essential measures of the sound the healthy economic conditions of a country. It can be studied with the help of foreign trade. Foreign trade is a trade of economic transactions between two individual countries or more groups of countries during any given period of time. The position of balance of payment of India can be studied under the major components of current account, capital account and official reserve account. This paper attempts the study of the current position of balance of payment of India and also analysis the causes of disequilibrium (deficit) in balance of payment.