000			01642pab a2200169 454500
008			180718b2005 xxu||||| |||| 00| 0 eng d
100			_aRakshit, Mihir
245			_aOn liberalising foreign institutional investment
260			_c2005
300			_ap.991-1000.
362			_a18 Mar
520			_aThis paper critiques the approach and recommendations of the 2004 government of India expert group on foreign institutional investment flows. The group's approach raise several important analytical and policy issues. The most crucial of these relate to effects of FII flows on (a) aggregate and sectoral investment; (b) behaviour of financial, including foreign currency, markets with special reference to their volatility; and (c) efficacy of fiscal and monetary instruments in attaining the objectives of macrostabilisation and growth. The article examines the macroeconomic impact of FII flows in the light of the Indian experience, and draws some policy conclusions regarding the role of such flows. It also addresses the issue of volatility in the Indian context. It finds there is no coherent macroeconomic model behind the expert groups' analysis and recommendations; no appraisal either of the optimal scale of capital inflows or the relative merit of FII vis-a-vis other categories of capital receipts at the current juncture of the economy; and no examination of monetary/fiscal problems associated with FII or of the quantitative impact of such flows on investment and other macro variables. - Reproduced.
650			_aLiberalisation
650			_aForeign investment
773			_aEconomic and Political Weekly
909			_a69412
999			_c69412 _d69412