The U.S. Federal Reserve System's choice to taper its quantitative easing program triggered substantial capital outflows from India, and the rupee depreciated by 13.7 per cent from June to August of 2013. Exporters stood to take advantage of the depreciation, although growing prices were complained of by firms dependent on imports.
On a macro level, economic growth fell and inflation remained high, raising doubts that the much-touted "India growth story" was over. The Reserve Bank of India, India's central bank, faced the tough job of fighting inflation and quitting the rupee's fall once the economic growth had slowed down. Expectations were high for an action that is appropriate from the bank as room for policy maneuverability appeared limited.
PUBLICATION DATE: November 20, 2015 PRODUCT #: W15525-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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