New India Forex Policy
In the first 40 yeas after the British left India, the country hard a very restrictive policy regarding the foreign exchange rules in india. In the late 1980s however the forex reserves of the country fell sharply and the country had to frame the new India forex policy.
The focus of India forex policy which was earlier focused on the preservation of India forex reserves, shifted to the management of India forex reserves. The system allowed relaxation of foreign investment policy and the new India forex policy has brought the India forex reserves from the brink of extinction to the fourth highest reserves held by a single country.