In the external sector, there is considerable cause for comfort emanating from reasonable level of reserves, low current account deficit and adequate level of capital flows, but the need for continued caution and vigil is rightly noted. Above all, in the current account, improving the export performance and in the capital account, attracting FDI are highlighted as necessary for medium-term sustainability.
By all accounts, the major constraints in regard to both these appear to be the institutional framework  4  BIS Review 78/2001  and uncertainties in regard to the policy framework, both of which need to be tackled urgently as part of confidence boosting measures.