Exchange rate and Exports Performance

The liberalisation policies implemented in the external sector during the 1990’s brought the Indian economy closer to the world economy. As a part of this liberalisation process, India shifted from the fixed exchange rate system to the floating exchange rate system. However, this made the Indian economy with the exports sector in particular, become more vulnerable to the changes in world economy and the foreign exchange market. Given this background, it is interesting to examine the effect of Indian exports to the changes in exchange rate. The book provides assessment of the effect of real and nominal exchange rate on the exports performance of India during 1993-94 to 2008-09.The effect of both real and nominal exchange rate on both the aggregate level exports and disaggregate level exports is given. The book puts forward a number of implications and suggestions that are relevant for the policy makers and the firms engaged in exports business.