"The government has attributed the weakening of the rupee against the dollar in recent weeks to the reduced inflow into and occasional outflow of foreign portfolio investment from India’s equity markets. "
This article discusses as to why this argument is not convincing. The Hindu : Columns / Chandrasekhar : An imbalance to address: "India cannot continue to rest purely on the benefits it has hitherto derived from the exports of software and IT-enabled services. An effort to realize at least a part of the manufactured export competitiveness that liberalization was supposed to deliver, but did not, is crucial."
Revenues from remittances or the export of labour services cannot be the mainstay of the balance of payments of a modern nation.
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