Forex inflows seen jumping 70% to $91.3 this fiscal: CMIE

Leading macroeconomic research agency Centre for Monitoring Indian Economy (CMIE) has forecast capital flows topping $91 billion by the end of the fiscal, a staggering 70 per cent over $53.6 billion that the country received last fiscal.

"We expect the net capital inflows into the country touching $91.3 billion by the end of this fiscal and $68.8 billion by the end of the December quarter," CMIE said in its monthly review of the economy.

The agency's monthly macroeconomic report says this record spike is on the back of the massive inflow of $30.4 billion in the September quarter alone.

For the foreign funds looking for high returns, on the back of dirt-cheap funds from their homes markets, where returns are negligible, India and especially its stock markets have been the hot cake.

In September-October alone, they had pumped in nearly $13 billion into the domestic equities.

The record fund flows have been a cause of worry for the planners as a whole, and especially for Reserve Bank of India, which has been finding it difficult to contain the high inflationary pressures, mostly driven by abnormally high food prices, despite six consecutive rounds of rate hikes.