Capital flows News

During April-November period of the current fiscal, FPIs had pulled out a sum of Rs 7,008 crore from the country's capital markets after investing staggering funds in the preceding two financial years.

Capital flows to emerging economies are projected to fall to $981 billion this year, their lowest level since 2009, from $1.05 trillion in 2014.

Capital flows to emerging economies are projected to fall to $981 billion this year, their lowest level since 2009, from $1.05 trillion in 2014, due to disappointing economic growth, a drag from a potential U.S. interest rate rise and a drop in investment in Russia, the Institute of International Finance said on Thursday.

Amid a huge sell-off by foreign investors in the capital markets, RBI Governor Raghuram Rajan on Friday said India is well protected against volatile capital flows with its deeper reserves, surging growth and a stronger macroeconomic environment.

Describing remittances as a significant source of inflows to many developing countries like India, which received maximum remittances in 2013, the World Bank has called for removing impediments to its flows arguing that remittances are more stable than other capital flows.