Abstract

The caselet looks at the increase in forex reserves in India. It gives an overview of the state of forex reserves in India in the 1990s and discusses the RBI’s role in raising the reserves. It includes suggestions made by different bodies for the proper mobilization of forex reserves.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Forex reserves in India
• Adopting flexible exchange rate system
• and Arguments over using forex reserve in India.

Keywords

Forex, IMF, Planning Commission, fixed exchange rate system, flexible exchange rate system, RBI, FDI, FII, Korea Investment Corporation, foreign debts, Performance Based Deferred Payment concessions (PBDP), inflation, Planning Commission.