The study looked at real exchange rates in India and found evidence of mean-reversion in the rates calculated using different methods. When using a broader base of currencies, there was no mean-reversion, suggesting stability in exchange rate policy compared to the US dollar. The study also found that purchasing power parity did not hold for relative prices of traded and non-traded goods, hinting at the Balassa-Samuelson effect. This shows the importance of considering real factors in exchange rate models to separate nominal disturbances from real effects.