Edit this postOne will be surprised on going through the below writeup as Indian is the best destination for the investors and logic for the same is that in India, we are dealing with a controlled government which is trying to slowdown economy which is essentially strong in order to contain inflation.
Now when we analyse India we find that we have got real growth rates in excess of 8% still but still we have inflation running in excess of 8% as well which is clearly too high. If allowed to continue that would concern international investors.
Now we have a look at the Europe, which is having a real growth problem as they are dealing with growth of 1.5-2% in many economies and yet inflation even over there, in the UK for instance it's 4.5% and predicted to rise to 5% or maybe even more by the year-end. In that context, India still looks very attractive albeit we are having this controlled slowdown in growth near-term.
Thus we can conclude to say that international money clearly is just pausing to see how things turn out in India, I would suspect that international inflows will pick up again once we see some sort of peak to the current interest rate cycle.
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