India may see Foreign funds outflow
Posted by admin . Published on 15 February 2010, Received
The Indian economy saw a massive 20 billion dollars foreign fund flow in 2009 due to continuing economic growth. But in the last two months the inflation has been haunting the country and as per government estimates the January 2010 inflation at over 8.5%.
The continuing problem across Europe coupled with weak Japanese recovery is forcing many of the foreign funds to pull back their funds out of performing countries like Australia, India and China in the last few weeks. We are expecting the pull out by foreign funds to accelerate in the coming weeks due to investors fear of another round of global collapse. If Greece problem boomerangs or if Dubai comes again with a negative outlook, we can expect the problem to compound further.
