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The Reserve Bank of India has undertaken an objective to increase the liquidity in the system. With this in mind, the RBI have reduced the Cash Reserve Ratio, the repo rates and also the reverse repo rates in the past few months. Further reduction in the rates ( by the end of 2010 ) would encourage more investment into the financial structure of the country.
b. An increase in Government expenditure is also fathomed with a view to financially stabilize the economy with positive cash flows and thus eventually replenish the reserves of the country.
3. Springing back from the downbeat results of the global financial crisis namely: un-employment and downsizing in organizations; decline in the growth rate in exports; and fall in the global commodity prices (thus affecting exports), India could come out unscathed...
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