Foreign currency inflows: India

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Foreign currency inflows: India 2004-2014

The Times of India Nov 28 2014

FDI,FII and Remittance: 2004-2014

Talk about foreign money flowing into India largely centres around foreign direct investment (FDI), which gives a significant degree of control to investors, or foreign institutional investors (FII) -indirect investment in financial markets.Economists generally prefer FDI inflows to FII inflows, since the latter can exit suddenly, triggering a market crash and weakening the domestic currency. But FDI too involves some part of the profits being taken away to a foreign land. In India's case, both FDI and FII flows are dwarfed by remittances from Indians living abroad, the biggest source of foreign currency inflows.Source: World Bank, DIPP, *Remittance inflows are for calendar years

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