Foreign fund flow till Apr. the lowest since 2011 |ForumIAS

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What has happened?

Government data showed that the Indian economy grew 7.2% in the quarter ended December 31 while the Chinese economy expanded by 6.8%.

Reasons

Impact of higher oil prices, Indian banking system’s struggle with note ban, bad loans and polls among reasons
Overall bearish sentiments towards emerging markets with India being no exception

Trade war

There are tensions in West Asia, potential trade war concerns are escalating between the U.S. and China, oil prices are hovering around $75 levels plus dollar is strengthening
So, the uncertainties are at dramatically high levels and it is impacting foreign flows into emerging markets
Investors believe they can make more money investing in the U.S. as the interest rate there is also rising