What explains the surge in FDI inflows?

News Today 02.06.2021

Unprecedented short-term foreign portfolio investments are entirely responsible for the surge. And within the portfolio investment, FIIs shot up to $38 billion in 2020-21, from half a billion-dollar the previous year. The flood of FIIs has boosted stock prices and financial returns. These inflows did little to augment fixed investment and output growth. (Read More)

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