The advent of imperial powers and the discovery of new trading  routes completely changed the face of Indian business during the colonial period. The onset of the industrial revolution in the late 18th century had catapulted England into a position of leading industrial power. British tariff policy encouraged exports of raw materials to the detriment of India’s domestic industrial development and local enterprise.
The threat to act will be more effective the more credible the central bank has been over time in actually delivering price stability. In addition, the knowledge that the central bank will normally make use of all available options – as circumstances dictate – to counteract situations that have the potential for undermining confidence and perturbing market conditions enhance control of private expectations.