International Financial Market and Services

No nation today can afford to think of itself as an economic entity to itself. Because, Supersonic transport, satellite communications and the internet have literally shrunk the world while the phenomenal growth in international exchange of goods, services, technology, and finance has knit the national economies into a vast network of economic relationships.Even developing countries like India, which for a long time followed an inward-looking development strategy concentrating on import substitution, have, in recent years, recognized the vital necessity of participating vigorously in international exchange of goods, services and capital. During 1980¿s witnessed a significant shift in policy towards a more open economy, a considerable liberalization of imports and a concerted effort to boost exports. Further initiatives aimed at integrating the Indian economy with the international economy.During 1990¿s Quantitative restrictions on imports were to be gradually phased out as part of WTO commitments, and import duties were lowered. Foreign Direct and Portfolio Investments continue to show a rising trend. A unified market-determined exchange rate, current account opened convertibility.