Comments on: India in depth: Twin deficits joined at the hip Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: Anonymous Sun, 14 Oct 2012 03:29:58 +0000 In reference to the following point made by you in the article, why should RBI resist the appreciation of rupee? Given the fact that Global recession is anyway not going to help exports (and hence India is unable to leverage depreciation in rupee by higher exports), don’t you think marginal appreciation in rupee should be welcome?

“For instance, as the government unveils more steps like the recently announced 14 percent increase in the price of subsidised diesel, foreign investors will turn optimistic on Indian equities and will try to take advantage of the pessimism of domestic investors by buying stocks on the cheap. That will put pressure on the rupee to appreciate”