India’s external finances and the limits of forex swap inflows
The Economic Times reports that Chief Economic Advisor V Anantha Nageswaran highlighted ongoing balance-of-payments pressures despite increased foreign capital inflows.
TLDR
The Economic Times reports that India’s Chief Economic Advisor V Anantha Nageswaran highlighted persistent external pressures. The report says the Reserve Bank of India’s special forex swap window has brought in significant foreign currency, but describes those inflows as a temporary measure rather than a permanent solution. Rising imports and intensifying global competition for capital could worsen India’s external account situation, it adds.
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