Journal of Economics and International Finance
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Article Number - E946E8D1867


Vol.1(1), pp. 014-029 , June 2009

ISSN: 2006-9812



Full Length Research Paper

Foreign capital flows into India: Compositions, regulations, issues and policy options


Sumanjeet Singh




Department of Commerce, Ramjas College, University of Delhi, Delhi-7, India.


Email: sumanjeetsingh@gmail.com






 Accepted: 14 May 2009  Published: 30 June 2009

Copyright © 2009 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


 

Existing studies reveals that the huge surge in international capital flows since early 1990s has created unprecedented opportunities for the developing countries like India to achieve accelerated economic growth. International financial institutions routinely advise developing countries to adopt policy regimes that encourage capital inflows. Since the introduction of the reform process in the early 1990s, India has witnessed a significant increase in capital inflows. The size of net capital inflows to India increased from US $ 7.1 billion in 1990-91 to US $ 108.0 billion in 2007-08. Today, India has one of the highest net capital inflows among the EMEs of Asia. Capital inflows, however, not an unmitigated blessing. The main danger posed by large and volatile capital inflows is that they may destabilize macroeconomic management. As evident, the intensified pressures due to large and volatile capital flows in India in the recent period in an atmosphere of global uncertainties has posed new challenges for monetary and exchange rate management. The present paper elaborates on various aspects of the capital inflows to India and their policy implications.

 

Key words: Capital inflows, policy, exchange rate, India.


APA (2009). Foreign capital flows into India: Compositions, regulations, issues and policy options. Journal of Economics and International Finance, 1(1), 014-029.
Chicago Sumanjeet Singh. "Foreign capital flows into India: Compositions, regulations, issues and policy options." Journal of Economics and International Finance 1, no. 1 (2009): 014-029.
MLA Sumanjeet Singh. "Foreign capital flows into India: Compositions, regulations, issues and policy options." Journal of Economics and International Finance 1.1 (2009): 014-029.
   
DOI
URL http://academicjournals.org/journal/JEIF/article-abstract/E946E8D1867

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