An important factor in managing capital flows is the absorptive capacity of the economy. Despite large FII inflows in recent months, the rupee has not appreciated much because of our widened current account deficit. Nevertheless, we are carefully monitoring the size and nature of flows and will take measures as and when needed.
Rural growth and capital reform Development and entrepreneurship beyondbrics reader: What can the RBI do on its part to engender development in rural India? How can the RBI encourage entrepreneurship there so that we can reduce urbanization and decentralize India’s growth story?