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Rajeev Malik: Hop, skip and fall flat

The current approach toward capital inflows and the rupee remains an enigma.  There is something puzzling about how the government appears to be thinking about policies relating to capital inflows and the rupee. On the one hand, it is going all out to attract more foreign capital inflows and is also encouraging overseas borrowing by Indian companies. On the other hand, it now appears undecided about whether or not to allow further significant appreciation of the rupee against the dollar, a highly likely outcome if net capital inflows continue to surge.  It is hard to fathom that ...