The external sector has, by and large, exhibited significant strength and resilience. These positive features could be attributed to the framework for reform provided by Governor, Dr. Rangarajan, and the strategies to meet contingencies as also forex management provided by Governor, Dr. Bimal Jalan.
In the recent years, we have been building on these strengths while carefully monitoring the movements in the current account to ensure that the current account deficits are within sustainable levels. No doubt, the prevailing increases in capitalflows and global uncertainties are posing severe challenges to the public policy.