![]() ![]() Macroeconomic policy dimensions of India could be a drawback for India.Indian financial market is not strong enough to handle the additional risk of an international currency. Financial markets of India lack the capability in terms of the range of financial products, the volume of financial products and the volume of assets traded. Even though the value of the Rupee is determined in the open market, RBI's open market operations help maintain its stability. To internationalize rupee, capital free flow has to be allowed. RBI has iron fist hold on India's capital account. ![]() The trade deficit created, takes away the advantage provided by the growth rate. Even this has its limitations as India imports more than its export. India satisfies this criteria with its huge economic size.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |