Net capital inflows into India during the current fiscal will be about $50 billion, Dr C. Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council (PMEAC), has said. Capital flows cover portfolio inflows from foreign institutional investors (FIIs), foreign direct investments and external commercial borrowing (ECBs).<\/p>\n
The Council had earlier estimated net capital inflows of $55 billion. In 2008-09, there was a net capital outflow from the economy.<\/p>\n
“Capital flows have started picking up. Perhaps, in the second half, one would see a larger pick-up. So far the gross inflows have been $44 billion, but we have to account for ECB repayments and outward FDI also. The total net capital inflows could be $50 billion this year,” Dr Rangarajan told reporters on the sidelines of an OECD-India symposium co-hosted by the Organisation for Economic Cooperation and Development and ICRIER here today.<\/p>\n
In his address to the symposium, Dr Rangarajan said that this increased level of capital flow was manageable and would not pose problems for the monetary authorities.<\/p>\n
However, in her presentation, Ms Usha Thorat, Deputy Governor of the Reserve Bank of India, said that managing the capital flow is going to be a challenge in the coming days.<\/p>\n