The openness of the Indian economy is quite high now, even on the capital account as indicated by the large increase in gross capital flows, (i.e., both inflows and outflows), which are now in excess of 25 per cent of GDP.
It is in this way that East and South East Asia have led the way in facilitating the flattening of the world in merchandise trade and trade in associated tasks, and India’s different pattern of development to the outsourcing of information technology activities that have enabled wider trade in services.