..........The report said current account deficit and its non-disruptive financing have emerged as major challenges from the perspective of macro economic stability. "The performance of Indian corporate sector has been subdued and in the emerging scenario, their increased external borrowing and unhedged foreign exchange exposure may further increase their vulnerabilities," it said. In the foreword to the report, Subbarao said the slowdown and growth is the most worrisome factor, as industrial activity is stubbornly subdued and services remain below trend.................
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