New Delhi draws in $73 billion in 11 weeks, powered by special deposits for non-resident Indians
India has attracted inflows of $73 billion in 11 weeks, driven mostly by foreign currency bank deposits made by non-resident Indians.
TL;DR
- India has attracted $73 billion in foreign inflows in the last 11 weeks.
- The inflows are largely driven by a special scheme offering incentives to non-resident Indians for foreign currency deposits.
- This initiative aims to support the Indian rupee amid a rising energy import bill and foreign capital outflows.
- More than $65 billion of the inflows came from these bank deposits.
- India has been experiencing foreign capital outflows and a widening trade deficit.
- The rupee has weakened by 6.5% against the dollar year-to-date.
- The success of the scheme is temporary, with incentives ending on August 31st.