Last year Foreign Institutional Investors took out Rs 1.6 lakh crore from the Indian stock markets. If last year was a tide, this year is a tsunami. In the first four months of this calendar year, they have taken out more than what they took out in the whole of last year. The first four months have seen an outflow of Rs1,92,000 crore.Yet, the markets are more or less stable and the reason for that is the massive inflow of SIP's that small investors have been sending the stock market way. A fall in value of Indian rupee as compared to US dollar has only accelerated the process as repatriating the investment back leads to losses due to the depreciating rupee. As a nation, our FDI inflows have almost dried up, when seen on a net basis.The government is still not tackling the problem aggressively. The conflict in the Gulf is going to shave off 1% of India's GDP as per IMF estimates. 1% of India's GDP is Rs 3,75,000 crore, a massive blow to the economy. This government, 12 years into ruling has seen more economic advisors leave than any other.
