A period of deterioration, Microeconomics

A Period of Deterioration:

The entire period was very difficult for India's BOP, partly because of slow growth of exports in relation to import requirements and partly because of adverse external factors. Despite tight import controls (through quantitative restrictions) and foreign exchange regulations, the CAD was 1.8 per cent of the GDP. Foreign exchange reserves were at a low level, generally less than necessary to cover three months' imports. Almost the entire CAD (92 per cent) was financed by inflows of external assistance on highly concessional terms. There was hardly any commercial deficit.  

Posted Date: 11/15/2012 12:25:48 AM | Location : United States







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