Increased integration with global financial markets has made managing India's economy more complex. India has balanced various goals like growth, stable exchange rates, and controlling inflation amidst volatile capital flows. India has taken a gradual approach to opening up its financial markets, focusing on specific types of capital flows. By using a middle-ground strategy, India has managed to maintain some control over its monetary policy, exchange rates, and capital account. However, this approach has led to interventions in the foreign exchange market to prevent currency appreciation, resulting in a buildup of reserves. Despite a more flexible exchange rate since 2007, India's reserves have not grown, leading to concerns about their adequacy.