These vulnerabilities have now been accentuated in the context of the recent global financial crisis. It is also imperative to understand that unlike countries with current account surpluses, India generally has a sizeable quantum of current account deficit.
The exchange rate of Indian Rupee remains susceptible to ebb and flow of external capital, especially outflows during  6  BIS central bankers’ speeches  periods of stress. Given the growing level of our twin deficits of fiscal and current account hasty internationalization could only add to our external sector vulnerabilities.