Mumbai: India’s capital flow almost tripled in FY 08 than the capital it received during the same period last fiscal, the National Council of Applied Economic Research (NCAER) said in a recent report.
“In the first nine months of 2007-08, net capital flows rose to $83 billion from the $30 billion which the country received during the corresponding period of the previous year,” the report said.
The country maintained the trend of attracting funds, it said, adding the flow also boosted forex reserves. “Access to global capital has helped India’s macro- economy to see a rapid and steady rise in its forex reserves, post-1991 period,” the NCAER report said.
These capital inflows have become a significant force behind total investment spending and in terms of foreign direct investment (FDI) or external commercial borrowing, it complemented portfolio funds. Besides India, a similar trend has been noticed in all emerging economies, the report said.
“The overall capital flow to these economies has gone up from $168 billion in 2003 to $605 billion in 2007,” the report said.