of the balance of payments crisis in the early 1990s could be gauged from the fact that india ’ s foreign currency assets depleted rapidly from us $ 3. 1 billion in august 1990 to us $ 975 million on july 12, 1991. i must admit that i entered the policy circuit in ministry of finance, government of india during this period. as a result of the crisis, a conscious decision was taken to honour all debt obligations without seeking any rescheduling and several steps were taken to tide over the crisis. the steps undertaken towards this objective included, among others, pledging our gold reserves, tightening of non - essential imports, accessing credit from the imf and other multilateral and bilateral donors. after the gulf crisis in 1991, the broad framework for reforms in the external sector was laid out in the report of the high level committee on balance of payments, popularly known as rangarajan committee, as it was chaired by dr. c. rangarajan, former governor of the reserve bank of india and currently chairman of the economic advisory council to the prime minister. after downward adjustment of the exchange rate in july 1991, following the recommendations of this committee to move towards the market - determined exchange rate, we adopted the liberalised exchange rate management system ( lerms ) in march 1992 involving dual exchange rate system in the interim period. the lerms was essentially a transitional mechanism and a downward adjustment in the official exchange rate took place in early december 1992 and ultimate convergence of the dual rates was made effective from march 1, 1993, leading to the introduction of a market - determined exchange rate regime. ( see table 6 for movements of indian rupee from 1993 - 94 to 2005 - 06 ). the unification of the exchange rate of the indian rupee was an important step towards current account convertibility, which was finally achieved in august 1994 by accepting article viii of the articles of agreement of the imf. capital account liberalisation started as a part of wide - ranging reforms beginning in the early 1990s. the rangarajan committee recommended, inter alia, liberalisation of current account transactions leading to current account convertibility ; need to contain current account deficit within limits ; compositional shift in capital flows away from debt to non - debt creating flows ; strict regulation of external commercial borrowings, especially short - term debt ; discouraging volatile elements of flows from non - resident indians ; gradual liberalisation of outflows ; and disintermediation of government in the flow

eu, 35 % that they are pessimistic. 4 ortega y gasset, jose ( 1931 ), der aufstand der massen, p. 198. 5 american economic review ( 2015 ), 105 ( 4 ) : pp. 1339 - 1370, climate clubs : overcoming free - riding in international climate policy 6 nature index : 2023 research leaders ; on germany see also : kfw research : wettbewerbsfahigkeit – vom kranken mann europas zum superstar und zuruck : wo steht die deutsche wirtschaft? p. 15. 7 demertzis, m., m. dominguez - jimenez and l. guetta - jeanrenaud ( 2021 ), europe should not neglect its capital markets union, policy contribution 13 / 2021, bruegel, p. 6. 3 / 3 bis - central bankers'speeches