In the wake of unprecedented external payment crisis of 1991, India has witnessed wide-ranging economic reforms encompassing various sectors of the economy. A critical ingredient of the reform process has been the gradual opening up of India's external sector. The trade regime has been significantly liberalised with the abolition of quantitative restrictions and reduction in tariff rates. Non-debt creating flows are being encouraged. Against this backdrop and in recognition of the growing importance of the external sector in driving the economy, this book is focused on the developments of India's external sector since 1991. It examines developments in the following segments of India's external sector: foreign trade, export-import policy, tariff policy, current account management, capital account dynamics, foreign exchange reserves, exchange rate policies, external debt and aid, foreign direct investment and foreign portfolio investment.