In respect of capital outflows, the approach has been to facilitate direct overseas investment through joint ventures and wholly owned subsidiaries and provision of financial support BIS Review 89/1998  -4-  to promote exports, especially project exports from India. There are dual routes, namely automatic and case-by-case and there is an aggregate annual ceiling for such approvals.
Even at the current juncture, though, EMU in one part of Europe is already having an impact on the whole region.