Letters: Unstoppable FIIs

The editorial “Waiting for retail investors” (November 9) notes that foreign institutional investors (FIIs) have pumped Rs 1,30,000 crore into Indian equities in Samvat 2066 while Indian retail investors are still staying away. It also guesses this inflow of foreign funds will continue “well into the new year”.

With 90-95 per cent of global economic growth over the next five to ten years likely to be concentrated in India, China and, to some extent, other emerging markets like Brazil, and with China likely to come under increasing pressure over its exchange rate in the months to come, do investors in developed countries, with large funds to invest, have any choice but to continue investing heavily in India?

 

The Indian government needs to quickly put in place policies that will enable a significant part of this unavoidable fund inflow to come in as foreign direct investments (FDIs) in infrastructure (possibly as joint ventures with Indian investors). This will also prevent an excessive rise in the Indian share market.

Alok Sarkar, Kolkata

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