Reversal of Premature Policies

Reversal of Premature Policies Developments in the domestic financial markets against the backdrop of the turmoil in the south-east Asian markets have punctured the claims of the authorities that India's economic fundamentals were satisfactory and that we could open up the external sector further leading soon even to capital account convertibility. Therefore, if the new governor of the Reserve Bank has been introducing measures retracing some of the steps earlier taken prematurely and not as a natural consequence of sound fundamentals, he has strong reasons for doing so.