We are currently focusing on contingency planning for external Y2K-related disruptions, such as those affecting utility companies, telecommunications providers, large banks, and difficulties abroad that affect US markets or institutions.
While the current account after remaining in surplus for three years up to 200304 turned into a moderate and sustainable deficit in 2004-05, there was a significant strengthening in the capital account resulting in continued accretion to the foreign exchange reserves. India’s foreign exchange reserves currently exceed its external debt, thereby reflecting improved solvency of the economy.