Keeping FII faith

The rupee’s slide to a record low of 60 against the dollar holds a mirror to the deteriorating fundamentals on the current account side of India’s external transactions. The surge in import of gold, the ballooning oil bill and stalling exports, exerting enormous pressure on the rupee’s external value, are well documented. But adding to this potent mix is the emerging phenomenon of the exodus from the Indian debt market of Foreign Institutional Investor (FII) flows.

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