India: Unhedged Currency Risk of Corporations

Many people think that a firm gets exposed to currency risk owing to imports, exports and foreign borrowing. This is an incomplete picture. Suppose a firm switches from importing steel to buying imported steel from a domestic dealer.

Egregious Indian Protectionism Against Trade in Services

by Ajay Shah For many decades, India was one of the most protectionist countries in the world. This did great damage to growth and knowledge in India. Tariffs dropped from ridiculous levels to ridiculous levels in the early 1990s and then got stuck there. Yashwant Sinha, as Finance Minister, initiated a remarkable program of cutting …