"Since the liberalisation of the Indian economy in 1991 the country has experienced sustained current account deficits. These deficits were serviced by a massive influx of capital inflows, made possible by the gradual removal of or reduction in restrictions on foreign investments since 1991. However, things changed with the collapse of Lehman Brothers in September 2008. While a growth slowdown coupled with a deterioration of the current account balance was expected during the global financial crisis, the extent of the negative spillovers to India was striking nonetheless. Though offering many growth-enhancing opportunities, India's ever increasing integration with the world economy has given rise to a host of new challenges in managing the economy, particularly given the absence of any type of global policy coordination. This book sets out to provide an empirical assessment of some of India's crucial policy challenges pertaining to its monetary and external sector management"