No plan to put any cap on FII: MukherjeeOctober 26th, 2010 - 5:56 pm ICT by IANS
New Delhi, Oct 26 (IANS) The government has no plan to put any cap on flow of funds from foreign institutional investors (FIIs), which have pumped in nearly $25 billion so far this year, Finance Minister Pranab Mukherjee said Tuesday.
“At this time I am not thinking of putting any cap on the FIIs because I know that if I have $45-50 billion inflow from FIIs, it will be insurance towards my current account deficit,” Mukherjee said at the annual Economic Editors’ Conference here.
Overseas funds have pumped in $24.28 billion so far this year, the highest in a single calender year. FIIs have invested over $6 billion in October.
He said a sharp increase in inflow of funds from FIIs has provided cushion in controlling current account deficit. “I am confident with the flow of FIIs and foreign exchange availability, I will be able to contain current account deficit at around 3 percent of the GDP.”
Mukherjee admitted that inflows of foreign funds have put pressure on the Indian currency.
“The current levels of capital inflows, which exceed financing requirements of our current account deficit, have put pressure on the rupee, resulting in its appreciation in the last few months. The has implications for our exports.”
He said the Reserve Bank of India was keeping an eye on it and would take appropriate measures as and when required.
- India pitches for ratings upgrade from Fitch - May 17, 2012
- Measures to improve market conditions Monday: Pranab (Lead) - Jun 23, 2012
- We will improve market condition: Pranab - Jun 23, 2012
- India raises overseas investment limit in government bonds (Roundup) - Jun 25, 2012
- Eurozone crisis keeping Indian markets unstable: Pranab - Nov 23, 2011
- FII investment cap in infrastructure raised - Feb 28, 2011
- Overseas funds sell $22.39 million in equities - Sep 25, 2011
- Foreign Direct Investment in India to be more user friendly - Feb 28, 2011
- Foreign fund inflow touches $4.64 billion in September - Sep 26, 2010
- Government monitoring foreign capital impact: Mukherjee - Dec 24, 2010
- Foreign funds infuse over $2.6 bn in Indian equities - Sep 19, 2010
- FII investment raised in government and corporate securities - Sep 23, 2010
- Government can do little to check rupee slide: Rangarajan - Dec 14, 2011
- Overseas funds sell over $259 million in equities - Sep 18, 2011
- Foreign funds investments in September at $6.97 mn - Oct 02, 2011
Tags: bank of india, calender year, capital inflows, current account deficit, economic editors, editors conference, fii, fiis, finance minister, foreign exchange, foreign institutional investors, gdp, indian currency, inflow, insurance, measures, New Delhi, pranab mukherjee, reserve bank of india, rupee