NEW DELHI: India has attracted net foreign capital of $23.6 billion in the quarter ended September 2009. This is 3 times the inflow as compared to the same quarter last year. But still the RBI is not much concerned with the liquidity issues as the capital flows in the first quarter, in total, was $29.6 billion.
Our View: The inflows can accredited to the fact that Indian Economy is doing better than the western/developed economies. Also, the interest rate, increase in the BSE/NSE index, appreciation of Re plays an important role in diverting the funds to India.