FCNR Inflows Cushion Rupee, BoP; FII Flows Crucial for Sustained External Stability: Report

FCNR inflows cushion rupee, BoP; FII flows crucial for sustained external stability: Report

Foreign currency non-resident inflows have significantly bolstered rupee stability and India's balance of payments. However, the current support from these inflows may not suffice for long-term external stability. Foreign institutional investor flows are crucial for maintaining economic balance as the support from FCNR is absorbed. India's goods deficit has reached a decade-high despite continuous support from services exports and remittances.