India still a foreign investment hot spot??
No, Not so simple!
The Reserve Bank of India has expressed its discomfort over the rise in debt inflows in the last few months. Foreign debt inflows in January so far have amounted to $3.21 billion against $1.7 billion through equity inflows.
“We have a preference for non-debt flows over debt flows and that preference persists.
The composition of capital inflows shifted in favour of debt, with a rise in the proportion of short-term flows. If the pace of FDI inflows does not pick up once again and FII equity inflows revert to the decelerating trend, CAD may have to be largely financed through debt creating flows in the coming quarters. Recent pick up in FII flows has been mainly on account of investment in debt instruments.
India’s total external debt has risen to $326 billion while forex reserves have dipped to $293 billion.
RBI not comfortable with rise in debt inflows - Indian Express
---------- Post added at 10:24 PM ---------- Previous post was at 10:22 PM ----------
* In 2011, out of $8.65 billion foreign debt inflows (INDIA), oh........bad news
No, Not so simple!
The Reserve Bank of India has expressed its discomfort over the rise in debt inflows in the last few months. Foreign debt inflows in January so far have amounted to $3.21 billion against $1.7 billion through equity inflows.
“We have a preference for non-debt flows over debt flows and that preference persists.
The composition of capital inflows shifted in favour of debt, with a rise in the proportion of short-term flows. If the pace of FDI inflows does not pick up once again and FII equity inflows revert to the decelerating trend, CAD may have to be largely financed through debt creating flows in the coming quarters. Recent pick up in FII flows has been mainly on account of investment in debt instruments.
India’s total external debt has risen to $326 billion while forex reserves have dipped to $293 billion.
RBI not comfortable with rise in debt inflows - Indian Express
---------- Post added at 10:24 PM ---------- Previous post was at 10:22 PM ----------
* In 2011, out of $8.65 billion foreign debt inflows (INDIA), oh........bad news
