Exchange Rate Management — Mains Questions

Critically evaluate India's managed float exchange rate regime, highlighting its advantages, disadvantages, and the challenges faced by the RBI in its implementation. (250 words, 15 marks)

Examine the role of the Reserve Bank of India (RBI) in managing India's exchange rate, detailing its various tools and the policy trade-offs involved. Illustrate with recent examples. (250 words, 15 marks)

Discuss the challenges posed by volatile capital flows and external shocks to India's exchange rate management. How has India's policy framework, including partial capital account convertibility, helped mitigate these challenges? (250 words, 15 marks)