Although Europe's internal migration of labour and capital shares common features with global problems, important differences can also be found. As to intra-European migration, a positive difference relative to the global situation is the fact that the general level of education in both old and new member states is more or less the same.
Thus, the flows are largely autonomous and remain beyond the reach of conventional policy instruments. On the other hand, the trade balance deteriorated despite depreciation of the rupee mainly due to relatively price inelastic nature of some of India’s imports, as well as a slowdown in exports reflecting falling global demands.