Monday, February 11, 2013

On reducing the old glitter

......Strangely, the report does not refer to an overvalued rupee making imports cheaper. It is worth recalling that at the height of the foreign exchange crisis in 1991, Manmohan Singh liberalised imports, cut import duties and devalued the rupee to launch the reforms process. The present thinking in RBI seems to run counter to that strategy, preferring a strong rupee, higher duties and import restrictions.

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