Our aim is to make the onshore market more accessible and attract higher transaction volumes. External Headwinds and Domestic Financial Stability 22. With increased trade and financial linkages with rest of the world, India has become more susceptible to the vagaries of heightened global economic uncertainties.
While trade channels take some time to show a tangible impact of global shocks, it is the financial and confidence channels that quickly transmit the global shocks as was evident in the case of India during the taper tantrum period in mid-2013.