India's Foreign Trade and Real Exchange Rate Behaviour, 1980-1998

9 Pages Posted: 21 Oct 2007

See all articles by Prabirjit Sarkar

Prabirjit Sarkar

University of Cambridge - Centre for Business Research (CBR)

Date Written: 2001

Abstract

The study observes that in the 1980s, India's balance of trade deficit showed a tendency to decline in the face of a more rapid growth of exports than imports. The seven year period under NEP(1991-98), however, did not accelerate the process. Rather there is some indication of its failure on the balance of trade front. Contrary to the claim made in certain pro-NEP circles, exports did not pick up, while imports accelerated. Due to its failure to control domestic inflation vis-a-vis India's trading partners, the real (effective) exchange rate of the rupee appreciated in spite of substantial depreciation of nominal (effective) exchange rate.

Keywords: India, liberalisation, growth, real exchange rate, export performance

JEL Classification: F43, O11, N15, O53

Suggested Citation

Sarkar, Prabirjit, India's Foreign Trade and Real Exchange Rate Behaviour, 1980-1998 (2001). Available at SSRN: https://ssrn.com/abstract=1021556 or http://dx.doi.org/10.2139/ssrn.1021556

Prabirjit Sarkar (Contact Author)

University of Cambridge - Centre for Business Research (CBR) ( email )

Cambridge
United Kingdom

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