After a dip in FY16, capital inflow has improved substantially during the first half of FY17, as per data released by RBI recently. Inflows so far stand at over $ 25 billion, almost three times the total inflow during FY16. More importantly, two-thirds of it is in the form of more stable, foreign direct investment. … Continue reading Foreign Capital Inflows – India's Performance..
- Britain wakes up to the news of ‘Brexit’ with a narrow 51.9 – 48.1% vote..! The exit, specially in the backdrop of polarized election campaign in the US, seems to indicate growing isolationism the world around, shrugging off the economic costs. Even though the Brits leave with an awareness of certain pain of departure, the pain could be more severe and last longer than being assumed. Markets across the world including India react with shock. Pound falls by more than 10% before recovering partially. British Prime Minister, a supporter of staying-in, says he would not be the right person to lead the country through this transition and would step down by October. The unsettling questions now is – Can this trigger further exits within EU. (More on this – https://indiaeconomyandbusiness.com/2016/06/22/brexit/)
In terms of net trade balance, different categories have vastly different share and therefore, criticality in maintaining the BoP. The shares are – Trade in Goods. ( -12.7%) Services. (6.8%) Transfers. (6.2%) Income from investments. (-2.4%) Total Current Account deficit (-2.2%) This means, even with lower share in total trade, services and transfers account for … Continue reading Balance of Payment – Part II