India’s External Sector C.P. Chandrasekhar and Jayati Ghosh

Even before global currents caused relatively rapid outflows of mobile finance capital from India, the Indian economy was vulnerable on the external front. The recent pattern of growth that has been reliant on capital inflows to generate domestic credit-driven bubbles, rather than trade surpluses is not sustainable and puts the economy at greater risk.

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(This article was published in the Business Line on January 9, 2012)