This paper examines the role of exchange rate changes on India's trade. The drivers of exports and imports (income, exchange rate including sectoral differences, and exchange rate variability) are estimated for the short and long run including a structural break. Using annual data from 1994 to...

India's current account position has been worsening in recent years. Data on the components of the current account and the composition of the trade account highlight some concerns but also provide a reason to be optimistic about India's external sustainability. This paper studies sustainability...

This paper examines the relation between exchange rates and prices in India over three periods, 1975-1986, 1992-1998 and 1999-2010. These periods which are marked with changing trading and monetary policy regimes provide an interesting case study to analyze the importance of openness and...

Following the 1991 crisis, India undertook reforms that liberalized trade and investment. India faced current account deficits for most of the period following these reforms. This paper analyzes sustainability of India's current account position over the last decade using the intertemporal...