by emigrants. A set of complex, interrelated factors must account for this, but no up to date, state-of-the-art analysis of this has appeared. Presumably the Planning Commission and the concerned ministries are seized of the problem. One critical question which must arise is whether the projected 6 per cent growth in the Eighth Plan will not be thwarted by exports failing to deliver the imports needed for this rate of growth. And if this is at all likely, what contingency plans can be devised which can be expeditiously put into operation? It may not be prudent to bank on a growing stream of non-resident deposits to meet a portion of the current account deficits. On this point the Annual Report of the Central Board of the RBI recognises how "the sustained and sizable inflow of funds" under the different accounts of non-resident deposits has facilitated the financing of the bop deficit (p 62), On p 71 it is stated, with some satisfaction, that these deficits have been financed from different sources on "reasonable" terms. While the cost of borrowing from the international institutions may not be large and bilateral aid may be, at. least nominally, low-cost (not so in reality if allowance is made for the particularly inflated prices at which imports under suppliers' credits, are acquired), would the rates of interest on these nonresident deposits qualify as being reasonable? Already perhaps the aggregate of these deposits, including accumulated interest, exceeds the total foreign exchange resources of India. The RBI Report places the country's debt service obligations at as high a level as 24 per cent of exports and gross invisible receipts in 1987-88. Tbday it is perhaps even more. But this excludes the outflows of profits earned by private foreign capital in India and royalties, technical fees, etc, and the growing but unseen accumulation of interest on non-resident deposits. We hope the authorities will correct us if we are mistaken.
