An analysis of revenue and expenditure pattern of grama panchayats: A case study of Bangalore Rural District

This paper examined the existence of J curve effect in India since liberalization by using the relationship between India's REER and its trade balance over the period of 1991 to 2016. The paper using Error Correction model and the empirical result shows that while existence of J curve in India in the long run the exchange rate and trade balance are positively related.Current account is one of the important components of Balance of Payment of the Country; it refers imports and exports of merchandise goods and invisible services. When exports are less than imports current account will get deficit and to make surplus in the current account can be achieved either by Depreciation or by Devaluation or by both, these methods are based on currency exchange rate (NEER & REER). This paper is attempts to examine the relationship between India's currency devaluation and balance of trade by using the time series data from 1991 to 2016 and by constructing Johansen's Co integration method to find the existence of “J” curve effect in India.