 "Dollar")
Indian financial markets, particularly equities, have witnessed hefty foreign investment outflows the past eight months, amid higher US interest rates and a surge in global commodity prices brought on by the Ukraine war.
A weak outlook on the country's GDP growth after the scars inflicted by the Covid-19 pandemic has exacerbated the flight of foreign capital from Indian markets.
A paper authored by Reserve Bank of India staff, however, says that there is (only) a five per cent chance of portfolio outflows from India of the order of 3.2 per cent of GDP or $100.6 billion in a year, in response to a Covid-type contraction in GDP growth.
