Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

India macroeconomic indicators


Published on

Published in: Business
  • Be the first to comment

India macroeconomic indicators

  1. 1. Macro Economics -2 Group Assignment – Group 3B By Natasha, Soham, Satwik, Vinayak, Jose
  2. 2. Contents 1)Introduction.....................................................................................................................................3 2)Foreign capital flows .......................................................................................................................3 2.1) Portfolio Flows.........................................................................................................................6 2.2)Foreign Institutional Investments.............................................................................................7 3)Human development indicators......................................................................................................8 3.1) Gender Equality.......................................................................................................................8 3.2) Health Care..............................................................................................................................8 3.3) Education...............................................................................................................................10 4)Power Sector.................................................................................................................................13 5)Globalization Privatization and Liberalization................................................................................20
  3. 3. 1) Introduction We will be studying the macro economic performance of India focusing on the following four variables • Foreign capital flows • Human development indicators • Power • Globalization, privatization, liberalization 2) Foreign capital flows During the late 1990s there was a plan for full capital convertibility with a set of pre-conditions to be met. However, during the Asian financial crisis, this issue became very controversial and the absence of direct or indirect effects on India was seen as Indian administration’s wisdom towards outward capital flows controls. Even till date India hasn’t implemented full capital convertibility and the liberalization of it has been progressing gradually. However, continuous liberalization of Indian economy has ensured that inward capital flows grew along with the impressive growth numbers posted by various sectors. Broadly speaking, in India Capital account convertibility reforms followed a distinctive pattern. There was differentiation between, inflows, outflows and inflows associated with outflows and these have been less restricted, highly restricted and unrestricted respectively. Even residents and NRI were discriminated in the sense residents were more restrictive and NRIs were less restricted. Additionally, there was a hierarchical approach towards individuals, corporations and financial intermediaries and these were highly restricted, restricted and less restricted. On an overall basis India’s approach was very cautious in the sense what was liberalized was clearly specified and the rest all were restricted. Indian capital markets opened up in 1991-92 for direct participation by foreign institutional investors. FII’s were allowed to invest all primary and secondary market securities including the stocks of listed or going-to-be listed companies. Additionally, Indian companies were permitted to tap foreign funds through American Depository Receipts / Global Depository Receipts (ADR / GDR) or Euro convertible bonds channels. Today the state of capital flows stands to be the best since 1947. Though most of the channels have been liberalized, indirect restrictions in terms of quantitative controls still exist. One of the main objectives of capital account reforms was to shift the focus from debt flows to non-debt flows. Non-debt flows are majorly through Foreign Direct
  4. 4. investment or foreign institutional investors rough wherein the major expectation that drives them is growth. Debt flows are mainly trough External Commercial Borrowings (ECB), Government securities and commercial paper and the main factor that drives investments in this channel is interest rate difference and exchange rates. There has been a significant shift from debt creating flows to non- debt creating flows between 1990’s and 2005-06.More specifically, non-debt creating flows contribution has increased from 55.5% in 2002-03 to 81.7% in 2005-06. Below graph shows the trend in debt creating flows and non-debt creating flows. One of the reasons for economic reforms in external sectors has been the gradual liberalization of economy to foreign investments. The growing contribution of foreign investment inflows in the capital account of India justifies the renewed interest with respect to those transactions. More specifically, foreign investment contributed 1.43% of total capital flow in 1990-91 compared to 73.79% in 2006-07.
  5. 5. The proportion of foreign investment in Gross Domestic Product (GDP) has been pretty low. However, this figure has improved significantly during the past eight years. This ratio recorded an all time high of 2.7% during 2003-04.The major contributors of foreign investment are foreign direct investment and fooreign portfolio flow s. Foreign direct investment further constitutes of direct investments thorugh equity, reinvested earnings and other capital. Whereas foreign portfolio flows is contributed by investments through ADR, GDR, FII, ECBs etc. Foreign Direct Investments were maily in services sector. This fact reflects the fact that the country growth during past several years was driven by services and this gives it a comparative advantage in services trade. Additionally, Information Technology sector was the major sector driving the services segment. IT and ITES gave India large share of international services trade market and not surprisingly these sectors attracted major part of the foreign capital inflows.The other sectors that received considerable share of the foreign capital were finance, insurance, real estate and business process outsourcing. During the period 2002-03 to 2007-08, net capital flows to india rose from $ 11 billion to $ 110 billion. Especially, foreign capital inflows tripled in 2007-08 compared to 2006-07. Just the first nine months of 2007-08 attracted more than 80 billion us$ in foreign inflows. This huge jump in the inflows has lead to country growth and thereby to further surge in inflows during the same period. This huge growth were led by sustained growth in India, favorable interest rates regime, and optimistic investment scenario. From risk perspective, India was looked as a low risk destination due to higher GDP growth rates coupled by higher interest rates. Additionally, such steep rise in foreign inflows halped India
  6. 6. to increase its forex reserves. Especially during the past few years the growth in foreign inflows has been sufficient enough to compensate the current account deficit. Such unprecedented surge in foreign inflows threw a challenging situation to reserve bank of India in managing exchange rate, monetary policy and inflation. 2.1) Portfolio Flows The portfolio flows began with a modest few million dollar during early 1990s, grew steadily till the Asian financial crisis broke, then portfolio flows saw a net outflow during late 1990s. The beginning of this century saw portfolio flows continuing. On a cumulative basis the net portfolio flows have been around fifty seven billion $. All over the world an area of concern associated with portfolio inflows has been volatility of flows. This has been true in the Indian context too. During the past fifteen years there was a significant volatility in portfolio flows. As already mentioned in the above paragraphs, the three main channels that contribute towards portfolio flows are American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), Foreign Institutional Investors (FIIs) and offshore funds. A closer look at the inflows through these channels indicates that the portfolio flows are majorly driven by FIIs and that the contribution from offshore funds has been almost negligible. However, when the economy opened up offshore funds contributed to the major part of portfolio flows in the initial years.
  7. 7. 2.2) Foreign Institutional Investments FIIs started by investing just one million US $ in 1992-93 and over the past decade they became a major source of investments through portfolio flows. Over the past three to four years inflows from FIIs represent over 80% of the total portfolio flows coming into India. Additionally, more than 1600 FIIs are registered with SEBI as on February 2009 compared to just three in 1992/93. Among all the registered FIIs, more than 50% of them originate from USA and UK.
  8. 8. 3) Human development indicators The United Nations since 1990 has been publishing the human development report. In the latest report India takes the 132nd position among a total of 177 countries rated. The report looks at data beyond just the GDP of a country to rate a country on more wider and accurate sense of well being. 3.1) Gender Equality Over the ages India has been know to have widespread gender inequality. In India women are outnumbered by men unlike a lot of other countries .According to a gender gap index report released by the World economic forums in 2007, India took the 114th position among a total of 128 countries. On the whole India had 59.4 % gender equality. For economic participation it stood at a measly 39.8%. On the political empowerment front though India fared much better with 106 women in parliament and 118 in ministerial positions across the country. The past few years have seen a lot of policies introduced by the government of India to bridge the gender inequality gap in India. There have been several legislations introduced which will go a long way in bringing the country towards legal equality for men and women. Among the legislations introduced were acts to give women equal inheritance rights, employment of women at night while requiring the employer to provide for the safety and protection of women, acts preventing the arrest of women after sunset and before sunrise. There were also increased budgetary provisions for 100% women welfare schemes and the government in trying to bridge the gender equality gap has set it self a target of ensuring that at least 33% of the beneficiaries of all government schemes are women. There is also a bill introduced in parliament that would ensure 33% reservation for women. After several controversies and allegations of gender bias, there have also been changes in the army to bridge this inequality gap. 3.2) Health Care Man has always pursued a quest for a health lifestyle liberated from the fears of ailments and illnesses. The Indian health care space too has witnessed rapid developments over the times The average life expectancy has witnessed a steady rise over the years starting with an average life expectancy of 38 years around independence time; the average life expectancy had gone up to 65 years according to the last report released by the WHO in 2006. This can be primarily attributed to the focused efforts of the governments over the years to improve the health standards of the country. Across the country though there are variations in the average life
  9. 9. expectancy .States like Kerala have a much higher life expectancy as compared to states like Bihar and Uttar Pradesh this is mainly attributed to differing income and literacy levels. Recently India has witnessed a surge in the number of communicable diseases like dengue fever, viral hepatitis, tuberculosis, malaria and pneumonia. The new strains of these diseases have developed an increased resistance to existing drugs. This trend has been attributed to housing of an inferior level, insufficient water supply, sewage and waste management systems, and a deteriorating public health infrastructure setup. With an increase adoption of unhealthy western diets high in sugar and fat content, India’s urban areas have also seen a rise of a new kind of lifestyle diseases which include diabetes, cancer and hypertension. India’s infant mortality rate (IMR) has declined from 70 per 1000 births in 1999 to 57 per 1000 in 2006. If we compare urban and rural population the IMR in urban areas is lower than that observed in rural areas. However if we compare the IMR of India to that of countries like Japan and Sweden we realize that we still have a long way to go . The IMR of Japan is as low as 5 per 1000 births. The high IMR in India has been mainly attributed to the socio-economic status of women, insufficient antenatal care, low proportion of institutional deliveries and a scarcity in the availability of trained birth attendants. The malnutrition levels in our country are very high. A recent report released by UNICIEF indicated that half of the world’s hungry children live in South Asia. With an ever widening income disparity between the rich and the poor not helping their cause, people in the rural areas are really bearing the brunt of inadequate public health care facilities and high poverty levels and this is quite aptly reflected in high IMR numbers. The maternal mortality rates in the country are the second highest in the world. Even though we have progressed since independence the girl child is still looked down upon in rural India and is discriminated against. Child marriages, poverty and absence of proper healthcare are the main reasons for the high mortality rate. Restrictions on their mobility also pay key contributors to reduced health care facilities available to women. There have been epidemiological shifts observed in the occurrence of several diseases. We have managed to eradicate small pox and guinea worm and are on the verge of eradicating Leprosy and polio in the foreseeable future. The past few years have seen a surge in the number of corporate hospital setups and the healthcare industry is undergoing a transformation from an unorganized to an organized private set up. An increased investment in the healthcare service industry has been buoyed mainly by a strong economy and a rapidly increasing population numbers. There is a general absence of a proper public healthcare medical Insurance system and majority of the people are required to pay out of their pocket before
  10. 10. availing of any treatment. This can pose a severe problem to the poor who neither have the medical insurance nor the money to pay for the medical treatment and thus have to forego treatments for a lot of ailments which if treated could actually go on to save their lives. India’s population and economy is growing at a very rapid pace however its public healthcare infrastructure has not kept pace with this growth and the number of public health facilities is grossly inadequate. The levels of water sanitation in our country is extremely low and a whole lot diseases are transmitted through unsafe drinking water With a growing economy and an increased number of middle class people a lot of Indians will start availing of private healthcare services in the near future. Thus relieving the burden faced by the public hospitals. Also aiding in this transition will be an increased penetration of medical insurance coverage throughout the country. The country also needs to set very high quality standards to ensure that there is no dip in the quality of healthcare services. The future years could see an increased spending on healthcare infrastructure to cater to the needs of an ever growing population. We could also see the advent of telemedicine with the doctor to patient ratio grossly inadequate, the future may involve leverage on information technology to facilitate monitoring and treatment of patients via video conferencing and the internet. The rise of a corporate healthcare setup will see an increase in the influx of medical tourists from all across the world. Medical tourism will act like a shot in the arm for the healthcare industry bringing in a whole lot of revenue for the hospitals. The hospitals however should ensure that they do not deprive the local Indians from medical treatment to fulfill their medical tourism requirements otherwise the entire health care sector may invite punitive restrictions from the government with regard to medical tourism 3.3) Education Literacy is an individual’s first attempt towards learning and knowledge building and therefore literacy indicators are critical for the assessment of any an individual’s development. Indian literacy rates have increased significantly post independence from a literacy rate of 52% in the 1990’s to approximately 64% in 2000’s. The past few years have also seen a rise in the literacy rates of both rural an urban areas and a decline in the gap of rural- urban literacy rates. The male female literacy ratio however is more skewed towards the male population with males showing a far higher literacy rate. However with increased social awareness around the girl child the last few years have seen a significant rise in the female literacy rates. There is widespread disparity in the distribution of levels of literacy across the country. At one end we have states like Kerala which have literacy rates as high as 90% and at the other end we have Bihar with 47% literacy rate. The enrolment ratio of children enrolled in primary school is as high as 100% in
  11. 11. many states but gradually declines as they move higher up owing to an increased number of drop outs. Inability to deal with with studies and qualms about the worth of school education were among the main reasons cited for dropping out. The past few years have seen an increased focus on education. The UPA government has accorded top most priority to education and the expenditure for education has been increased form Rs 7000 crores in 2003 -04 to RS 34,400 crore in 2008-09 . Also the five year planned allocation for education has increased by more than five times to RS 275000 crore in the 11th plan. There has also been an increased focus and effort to bridge the gender literacy gap and provide education for all schemes. In order to encourage children to come to school we have also witnessed the introduction of the National mid day program across all the government schools of the country. Secondary education has also undergone some policy changes in the recent years. The general aim has been to increase the availability of seats and opportunities for the less privileged to avail of world class education. The number of IIT’s and IIM’s have increased and the coming years will surely see more world class engineers and managements graduates from these premier institutes shaping the future of our country. In-order to reduce the financial burden of education off parents and ensure that lack of finances are not deterrents for children to avail of quality higher education, the past few years have also seen the introduction of several interest free loans and other financing schemes. Among the major issues and criticisms faced by the education sector in India is that it lacks practical learning and is mainly focused on memorizing text books and reproducing them during the exam time. A lot of states also make it mandatory for students to undergo primary education in their local regional languages. These students later face immense problems when during higher education English becomes a mandatory medium of instruction. Lack of proper infrastructure is again a major issue with a lot of educational institutes not having proper drinking water facilities and proper toilets. Quality of education imparted is again a very crucial factor. A recent Nasscom- Mckinsey Report (2005) has indicated that not more than 15% of graduates of general education and 25-30% of Technical Education are fit for employment. There is also an emerging problem of a lot fake universities operating out of the country. Extending the primary schools to more villages in India and also increasing the enrollment rates of students between the ages of 6-15 could be achievable goals in the next five years. There would also be a quality review of our various educational programs and an increased emphasis would be laid on a more practical learning experience. Most of the learning happens at times when we want to learn and we have instructors at the other end to impart us with the knowledge thus an increase in the literacy rates is only achievable by an increase
  12. 12. in the number of quality teachers. We may also see new methods of delivery and an increased usage of information technology and elearning to facilitate distance education programs.
  13. 13. 4) Power Sector The Indian Energy Policy is characterized by the classic economic tradeoff between the following policy drivers: • An economy growing at over 5% which is increasingly dependent on a reliable supply of gas and petroleum, along with steady electricity • Rising household incomes in India, and consequent rising demand for steady electrical and gas supply from the domestic household market • The fact that the massive majority of India’s energy supplies in the form of petroleum is imported • Increasing awareness about environmental damage done by emerging economies, necessitating policies which encourage use of ‘cleaner’ technologies. As is evident, these tradeoffs are often at odds with each other. For example, the task of supplying clean renewable energy is rendered impractical in many instances in India due to the fact that it eventually becomes too expensive for Indian families and corporations to afford. The following graph shows the production of Electricity in India in kilowatt-hours vs the consumption of electricity in kilowatt-hours over the last 5 years.
  14. 14. Note the large excess of consumption over domestic electricity production over the period. If we look at the electricity imports into India over the same period, we find that though the consumption of electricity has been on a downward trend (see above), the imports into the country has been rising.
  15. 15. We can conclude that a significant portion of national resources are wasted in energy usage from coal and other non renewable energy sources. A lot of the problems in the Indian Power Sector are due to corrupt and inefficient governance. The following figure shows the relationship between estimates of power plant projects and their actual costs. All figures are in crores of rupees.
  16. 16. We see that pre 2007, there were massive cost overruns in power plant projects. There has been a definitive change in governance since the UPA government has taken over. We see that the amount of cost overruns have been on a steady decrease since the government had taken over 2004. Now, the power sector looks much more well managed than in the past, with projects going on almost at the cost at which they were envisioned. The above graph shows the amounts contributed by electricity and gas industry to the national GDP from 2003 to 2008. We see that there has been a steady rise in the figures, which indicates a growing industry.
  17. 17. Given the above data, what does it mean for India as a country ? India has set itself an ambitious target – to more than double per capita electricity consumption by 2011. The Ministry of Power states an investment need of about USD $200b to make this happen. It is clear that the government realises the importance of this sector and policymakers are taking the problem seriously. As seen from the statistics, the needs of the Indian consumer are far from being met by government policies. Transforming the state led beureaucratic power sector into a competitive market which ill appear attractive to investors will not be an easy task. The State Electricity boards registered a net loss of about $5b in 2004-2005 alone. The transmission and distribution mechanism is faulty, to say the least. It is estimated that more than 40% of power generated is lost in transmission, and to top this, power theft remains high. The government has taken some steps over the last 5 years to give some hope to the people. The Electricity Act of 2003 created autonomous state electricity comissions. Electricity trading was recognized as a separate line of business the independent and autonomous comissions form their own rules to counter power theft and better distribution mechanisms. The three key issues for the government to consider in the road to better power management are : • Payment risks from electricity sales • Tariff rationalization • Access to building plants Payment risks: The revenue collection rates in regions controlled by state electricity boards remain abysmally low. There is a cross subsidy structure to subsidize domestic and agricultural consumers, and the industrial players pay more as a result. Yet, the rate of industrialization is not enough to sustain payments. In states like Bihar and J&K, revenue arrear rates, due to collection inefficiencies are in the rage of 150%-200%. Thus for investors, the question whether states can pay for the power they consume remain a huge question. Tariff Rationalization: The subsidies discussed earlier along with the transmission inefficiencies keep the tariffs out of sync with costs of power generation. Many state governments, post the Electricity Act implementation have fallen in line to correct this imbalance, and raise costs for those who have enjoyed years of subsidized power. This of course causes a political problem. The politician consumer nexus has to me managed to sell the idea of power tariff increases.
  18. 18. Open Access: Indian consumers can now source electricity from their suppliers through existing infrastructure. By challenging the sole purchasing power of the state electricity boards, private players (generators) have a change to offset their payment risks and avoid commercial losses from theft. Yet, bureaucratic problems are thwarting growth in this area as well.
  19. 19. Coal There is a further problem facing the Indian power sector today. This is the problem of coal production. India’s coal demand is expected to grow at about 7% over the next decade. More than three quarters of coal consumption in the country is in the power generation sector. Though India has enough coal to last it for the next 250 years at current consumption, the problem is one of domestic production of coal. Coal imports to India have been rising steadily at about 12% annually to support domestic consumption. The government needs to support the coal industry to decrease reliance on foreign coal, and reap the cost benefits involved. One of the impediments in this area is the fact that private companies are still restricted to captive coal mining. The state owned coal companies simply do not have the track record or efficiencies to bring in the kind of investment India needs. Gas Of the total natural gas produced in India, about 40% is used to generate electricity and another 25% in the production of fertilizer. Nuclear Power India has achieved a high degree of self reliance in the making of nuclear power plants. However the costs of these plants are much higher than comparable capacity coal and hydroelectric plants. The gestation period for a typical nuclear plant in India is 5 years, far too long to gauge ROIs. What steps is the government taking? The UPA government has envisaged a plan called Power to ALL by 2012. In the road to achieving this goal, it is undertaking many large capacity projects. There is a concerted effort to ensure that all future requirements of power needs are procured competitively by distribution licenses except in cases of expansion of existing projects. The Ministry of Power is leading the way to establishing 5 ultra mega power projects. The Ministry will ensure proper coal block allotment, environmental clearances, state government support, and financial closures by institutions, and monitoring of timelines. Strengths in the sector India has abundant coal reserves and vast hydroelectric potential and a large pool of skilled personnel. In absolute terms, India’s power generation is comparable to that of Germany and UK, which is impressive on world terms and India also has a wide reach of State Utilities. Compared to many developing nations, there is a much better laid out mechanism of dispute resolution. Finally, India is one of the largest power markets in the world.
  20. 20. 5) Globalization Privatization and Liberalization India, the country that once upon a time followed the so called socialist policy was growing at a Snail’s pace. It was even termed the Hindu Growth Rate. This changed radically after the IMF bailed India out from bankruptcy. The then Government under the stewardship of Mr. PV Narasimha Rao and Mr Manmohan Sing in charge of the Finance Portfolio pioneered the change that transformed India from what it was to what it is today. They opened up the doors of the country for International trade, privatization, deregulation, and Foreign Direct Investment. Since then there was no looking back for India in terms of Economic Growth. The policies after the Independence were influenced by the British Rule. It was more in the lines of the Fabian Society which believed in Growth in a gradual manner rather than reforms. It was good to a certain extent because India had to build up an economy from the scratch. At the same time bad because the rest of the economies in the world were growing at a faster pace. Since India was closed to the rest of the world till 1990, benchmarking was also tough. One of the salient features of the Economy before the liberalization was the Five Year Plans that was inspired from Russian. The not so good aspect of the pre liberalization policies were the License Raj and the Inconvertibility of the Indian Rupee. This prevented foreign goods from entering the country and also paved way to bureaucracy. There was moderate growth seen towards the end of 1980s when the government relaxed the policies on the License Raj but it was still not sufficient. In 1991 Indian Rupee devalued and its ability to serve as a store of value or a medium of exchange changed drastically. This pushed India to the brinks of bankruptcy. India had to approach the IMF for help. In return the IMF bailed India out by transferring GOLD as collateral to London. This was the main reason for the forcing of the Economic reforms in the country. Some of the reforms during the 1991 liberalization were 1. Cut in the Licensing in the Industrial Sector. 2. The controller of capital issues was abolished – this decided the price and the number of shares that a company could issue 3. The Securities and Exchange Board of India Act of 1992 was passed which infested power to SEBI on the securities market. 4. Computer based trading system at the National Stock Exchange 5. Making the currency(Indian Rupee) convertible
  21. 21. 6. Paving way for Foreign Direct Investment by raising the foreign capital limit to 51% from 40%. 7. Opening the doors of the equity market and allowing Indian firms to raise equity from International Markets. 8. Privatization of the loss making public sector companies. What was started during Narasimha Rao’s tenure continued with the rest of the Incumbent Prime Ministers. Some of the major reforms of the latter governments were 1. Creation of Special Economic Zones. 2. The golden Quadrilateral Project 3. The Right to Information Act. Today the Indian Economy is one of the top 15 economies in the world in terms of market exchange rates and one of the top five economies in the world in terms of Gross Domestic Product. Today the annual GDP growth in the country is close to 7.5%. What was once growing at around 2% has changed by leaps and bounds. All this has been made possible owing to economic liberalization. From a mere 6%, the international trade in India has reached 24% of the Gross Domestic Product. Ever since the liberalization, the economy has become a broad- based one. India has risen to a level where she is a crucial voice of the developing countries in International Events. India has maintained a positive balance of payment since the liberalization. One of the major factors for this has been the inflow of cash from the Non Resident Indians. This has increased the foreign
  22. 22. currency reserves to a $285 bn. If used effectively, this can be used to develop the actual infrastructure of the country. The liberalization paved way for many multinational to setup their operations in the country. One major industry that flourished post the liberalization was the Information Technology Industry. The rapidly improving Infrastructure In the country, Availability of talent pool, Very high quality Infrastructure for Education, Very low costs for Operating, Strengths in the field of Research and Development, Established Technology Clusters across the nation, Very liberal Government policies and very good government incentives were some of the reasons for multinationals to setup their operations in India. Almost every major IT company in the fortune 500 list stetup offices in India. The BPO and Call Center Industry witnessed a geometric progression growth and the total IT exports from the country reached as high as $80 bn.
  23. 23. India has been one of the few economies that is not affected by the current economic crisis. The stage is all set of Indian Economy to dictate terms in the world. With the economies of scale shifting slowly from the west to the East, all the eyes are focused on India. All this shows that India has the potential to become the next economic superpower.
  24. 24. References option=com_content&view=article&catid=131&id=168:Indian%20Healthcare: %20The%20Growth%20Story EXT/INDIAEXTN/0,,contentMDK:21461167~pagePK:141137~piPK:141127~t heSitePK:295584,00.html 308525734F007458DF/$File/emerging-market-report-hc-in-india.pdf Background-Perspective.html 3274255/1439264-1193249163062/India_CountrySummary.pdf Down-29249-2.htm Economics
  25. 25. Reports National Human Development Report-Planning commission of India March 2002 India Vision 2020- Planning commission report Report to the people –UPA government 2004-2008 India’s macroeconomic performance and policies since 2000 by Shankar Acharya Foreign Portfolio Capital Flows into India by Nirmal Roy Indian Council for Research on International Economic Relations Working Paper Macro-economic Management of the Indian Economy: Capital Flows, Interest Rates and Inflation by Arvind Virmani-Ministry of Finance, Government on India working paper UPA Government report to the people – 2004-2008 Statistical Handbook of India (ISI) - 2007 Indian Power Sector – Emerging Challenges to Growth - SANDEEP KUMAR, ANURAG KHETAN & BISHAL THAPA INDIAN POWER SECTOR Challenges & Investment Opportunities Ministry of Power Government of India (Website :