It is a widely studied topic, so we have been able to draw on and adapt existing insights when addressing those challenges. Why is there a trade-off? Why is ex post efficiency not the same as ex ante efficiency? The reason is that we all react to the circumstances in which we operate. If circumstances change, so does our behaviour.
The foreign exchange reserves of the central bank as of October end, 2013 stand at $ billion and rupee dollar parity at Rs106 per dollar. Moreover, there are certain performance criteria for the IMF loan that we have to meet. We also need to implement strict reforms on the fiscal side. It needs to be understood that these reforms are absolutely essential.