India to receive $ 57 billion as capital inflows
India receives capital inflows via three ways. They are external commercial borrowings (ECB), foreign institutional investment (FII) and foreign direct investment (FDI). Due to the greater growth prospects with a favourable market, it moves to India.
ACCORDING TO a statement released by the Economic Advisory Council of the Prime minister of India, it is expected that during the 2010, India will receive net capital inflows of US$ 57 billion. This amount is however less than that of 2008, which was US$ 108 billion. But the amount is more than that of 2009, which was a mere US$ nine billion.
It is noteworthy to mention that India receives capital inflows via three routes. They are external commercial borrowings (ECB), foreign institutional investment (FII) and foreign direct investment (FDI).
Due to the greater growth prospects of the Indian economy along with a favourable market and currency conditiobke ns, foreign capital moves in to India. This high and regular inflow of foreign capital is quite good news for the country, as it will help to better fund its infrastructure and capital goods.
Moreover, this increased flow will help the government to finance the current account deficit for 2010, estimated at US$ 25 billion or two per cent of the GDP.
Login
 Login through Social ID
|
