1 week ago

India's Dollar Economy: Why Did $230 Billion Flee?

India's Dollar Economy: Why Did $230 Billion Flee?
India’s Dollar Economy (Part 2)—Why Did Rs 20 Lakh Cr ($230 bn) Flee BIT by BIT? · thequint.com

India received a lot of money from foreign investors over six years.

The total amount coming in was about $366 billion.

But about $230 billion also left the country through repatriation or disinvestment.

That made the writer question whether India gained much foreign investment overall.

The economy performed very well during the first four years of Narendra Modi’s tenure.

This period lasted until around mid-2018.

Oil prices fell sharply, while the government kept fuel prices from falling by the same amount.

The article also highlights GST, Aadhaar and Jan Dhan accounts as important economic and financial changes.

The excerpt asks why so much money left, but does not yet provide the full answer.

Key facts

Fresh inward FDI
$366 billion over six years
Repatriated or disinvested capital
$230 billion over six years
Reported net FDI
The article’s Part 1 described net FDI as falling to zero
Crude prices
Fell from about $100 per barrel to below $50 per barrel
Inflation
Contracted to 5 percent
Economic growth
Real GDP growth rose above 8 percent
FDI inflows during the upswing
Nearly doubled to $60 billion

Sources

Related news