ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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EXCHANGE RATE-Duality Not a Vice

procurement policy has undergone a Qualitative change in recent years. Import of wheat has had to be effected to bolster the dwindling food stock, but the review contains no mention of this. In the behaviour of industrial production, there are underlying forces of a significant nature on the supply and demand sides operating in specific industries which the public hardly gets to know of. For instance, industry is said to be facing recessionary conditions due to shortage of consumer as well as investment demand. A meaningful classification of industries in this regard would have been useful. Similarly, the role of government policy in re-orienting exports to the rupee- payment countries, particularly to the erstwhile Soviet Union, is a matter which should receive attention in any review of export-import trade. On the exchange rate front, the authorities must have been surprised by the stability in the rupee-dollar market rate. Reports suggest that the Reserve Bank has even had to intervene in the market to ensure that the rupee did not appreciate, leading to erosion of export competitiveness. The review does not tell us what factors have contributed to this unexpected behaviour of the exchange market.

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