Fed impact : 4 reasons why India stands out, to draw more FII cash

Fed impact : 4 reasons why India stands out, to draw more FII cash

• 1.
  Fed impact: 4reasons why India stands out, to draw more FII cash
• 2.
  • Improvement inexternal balance: India's external balance has improved significantly since mid-2013, with foreign exchange reserves rising by some $65 billion to $353 billion as of November 2015 and the current account deficit narrowing. Foreign exchange reserves increased by $483.2 million to $352.10 billion on December 4, over the previous week, said a media report. In rupee terms, forex reserves climbed by Rs 88.6 billion over the week to Rs 23,415.5 billion on December 4, 2015 .
• 3.
  • Commodity importer: Indiais less dependent than several of its peers on commodity exports, and has thus not been negatively affected by the global rout in commodity prices. According to latest trade data, imports declined over 30 per cent to $29.7 billion from $42.7 billion a year ago, led by low crude oil prices and subdued imports of gold, coal and fertilizers. This helped shrank the trade deficit to $9.7 billion from $16.2 billion.
• 4.
  • Sovereign debt: Onlya small part of India's sovereign debt is held by foreigners or is denominated in foreign currency. • Economic growth: Fourth, India's favourable economic growth outlook makes India relatively attractive for foreign investors. India's positive economic growth outlook stands out globally. Fitch forecasts India's real GDP growth to accelerate to 7.5 per cent in the fiscal year ending March 31, 2016 (FY16) and 8.0 per cent in FY17, from 7.3 per cent in FY15, supported by the government's beefed-up capex spending and gradual implementation of a broad-based structural reform agenda," Fitch said in a statement.
• 5.
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