There is a strong consensus that India is vulnerable owing to the large mass of FII investment in the country. The evidence is, however, increasingly falling into place about a rather different set of ground realities. FII inflow is seen as capricious. India’s “vulnerability” to the FII is asserted repeatedly by a broad spectrum of politicians. Paradoxically, India’s success in building a liquid equity market has made matters a bit worse. There are fluctuations in the global perspective about how emerging markets will fare.
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