The new RBI should revert to old rupee policy to address challenges

In our earlier piece in these pages, we highlighted the unwelcome consequences of the exchange rate policy adopted under the outgoing Reserve Bank of India (RBI) regime

The new Governor at Mint Road, Mumbai has arrived at a difficult moment. Economic growth has slipped, inflation remains elevated, while the international environment has become increasingly uncertain after a change of political regime in the United States. This is consequently not the time to bombard Sanjay Malhotra with unsolicited advice. Except on one critical issue, namely exchange  rate policy. 

  Our advice is simple: Abandon the strategy of the past few years and revert to the policy followed in the previous two decades.  

In our earlier piece in these pages, we highlighted the unwelcome consequences of the exchange rate policy