This refers to ‘Myopic’ (ET, Jun 26). The hike in the cap on the amount of government and corporate debt for foreign portfolio investors reflects the RBI’s concern for the falling rupee and its attempt to prop up the same. However, capital inflows on account of portfolio investment is certainly not stable like the one resulting from FDI. The FDI policy needs drastic review so as to encourage the same. The policy as regards multi-brand retail needs greater perspective. The falling rupee calls for addressing the issues affecting macroeconomic fundamentals and not just tinkering with caps on foreign portfolio investment.
- VIJAY MULLAJI (ET)
- VIJAY MULLAJI (ET)
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