Skip to main content

Should we be worried about capital flows?

A drop in foreign direct investment inflows and a pick-up in portfolio inflows into India has led to concerns that the economy is once again becoming vulnerable to a sudden halt in foreign financing. But FDI inflows are likely to recover and, more importantly, India has relatively small financing needs now compared to a few years ago. As such, there is no reason to worry.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.