Curb on imports to bring rupee to 68-70 level
The article reports about the ongoing measures taken by the Indian Government to stop the Rupee slide against the Dollar. Along with using the reserves , India plans to restrict Imports on non essential items to reduce pressure on the increasing CAD(Current Account Deficit) . To Increase the inflow of dollars into the Indian Economy , The Indian government had earlier announced easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on bonds to support the rupee and check widening of current account deficit
The topics covered are Balance of Payments, Current Account Deficit, Terms of Trade , Causes and consequences of protectionism and Marshall Lerner conditions with diagrams and formulae.
Evaluation will include various strategies for tackling the current account deficits, Balance of Payments and causes and consequences of protectionism . Discuss the impact on the consumers, Domestic producers, Government and countries at large in short term and long term.