e.  Why was the impact on India muted? Despite its immediate impact on the financial markets and the trade flows, the crisis did not have very significant impact on the Indian financial system.
The reasons for the muted impact is attributable primarily to (i) the macroprudential approach to regulation (ii) multiple indicator based monetary policy, (iii) calibrated capital account management, (iv) management of systemic interconnectedness, (v) robust market infrastructure for OTC transactions and (vi) a conservative approach towards financial innovation.