NEW DELHI (PTI): With the Rupee holding its ground, Indians with funds in foreign banks are bringing money back into the country, according to financial analysts.
Business circles say the unified exchange rate, extremely moderate rate of inflation and the stability of the Rupee are the ire main reasons for money flowing back into the country, reports “The Times of India.” The reverse capital flight may have something to do with the unusual buoyancy in exports in the first quarter of the current financial year.
As against the official expectation of about 15% growth in dollar terms, the growth rate in April June 1993 has been 27.76% at 5.12 billion dollars, the paper said,
Imports registered a negative: growth rate Of 2.66% during the” same period over the corresponding time last year, In absolute terms, the imports in April Jane 1993 came down to 5,42 billion’ dollars from 5,57 billion dollars in the same period last year. India’s foreign exchange reserves: crossed seven billion dollars, more than enough to finance four months’ import bill, the daily said, According to the Reserve Bank of India estimates about 100 million dollars are accounted for by foreign institutional investors and another 500 million dollars by foreign companies.
Article extracted from this publication >> August 27, 1993
