Forex crisis: Do we need to panic?

At a time when India needs to strengthen its foreign exchange inflows the most, the reverse has been happening on many fronts. India’s forex reserves have receded by USD 25bn to USD 400 billion, primarily because of the outflow of about Rs.66000 crores from the Indian stock markets, by the foreign investors and the huge increase of USD 26 bn in India’s annual oil import bill, due to the rising increase in global crude oil prices. The rupee has weakened considerably and despite that, there has been no major upsurge in India’s exports, which can help to mitigate the impact of a rising dollar on our CAD. The question is under such forex crisis, do we need to panic? Mr. Akhilesh Bhargava, Business Editor of HW Business and Finance shares his insights on the matter.