The Forum of Free Enterprise was a non-political organization founded in 1956 by A. D. Shroff and was established to educate public opinion in India on free enterprise and a democratic way of life. The Forum published booklets to further its objects. The following book titled, “The Foreign Exchange Situation” was published on March 6, 1958 and was authored by Professor B.R. Shenoy. This booklet is the edited text of a lecture delivered under the auspices of the Forum of Free Enterprise, Bombay, on March 24, 1958. The booklet explains the Foreign Exchange Situation of the country and suggests that economic development is a function of invested savings. Further the booklet talks about the economic process in democratic vs. communist planning and describes that under communism, there involves direct method and in a democratic society, the method is indirect. The author discusses the seriousness of Foreign Exchange Crisis and Economic Growth and explains that the drain of reserves began in April 1956, with the commencement of the Second Year Plan. Moreover, the author covers causes of the low level of Exports and Imports in India; restrictions on imports and payments, inflationary finance of investment, and a rigid exchange rate. Also, remedial measures are mentioned in the text to stop the drain of reserves and devaluation do not increase foreign exchange earnings. The text ends with a conclusion on how to increase India’s economy.