The Committee had made wide ranging recommendations ranging from methodology for correct computation of Open Exchange Position to introduction of Rupee based options and these suggestions had laid the foundation for a modern foreign exchange market in India. FEDAI played an important role in supporting the Reserve Bank in implementing these pioneering measures and suggestions aimed at major reforms in the market.
In addition, reforms addressing rigidities in labour and product markets and aiming at enhancing labour and capital mobility are the tools to ensure that market mechanisms will play an increasingly important role in limiting the scope for divergent developments in the euro area.