India looks for the answer to the rupee increase - that it will boost exports . Analysts say its industrial base is too small and too bound up in red tape to respond quickly . India still relies heavily on populist , capital - intensive development policies . Foreign borrowing is fueling excess production and increasing the current account deficit .
India looks for the upside to the rupee crisis - that it will boost exports . Analysts say its industrial base is too small and too bound up in red tape to respond quickly . India still relies heavily on populist , capital-intensive government programs . Government borrowing is fueling excess demand and widening the current account deficit .