25min chapter

The Seen and the Unseen - hosted by Amit Varma cover image

Ep 387: The Life and Times of the Indian Economy

The Seen and the Unseen - hosted by Amit Varma

CHAPTER

Impact of Foreign Capital on Indian Economy

The chapter explores how foreign capital influx due to low US interest rates affected the Indian economy, leading to a disconnect between the stock market and the real economy. It discusses the boom in investments and bank credit during the mid-2000s driven by outsourcing industry growth, challenges in infrastructure financing, and the influence of business cycles and currency stabilization efforts. The chapter also touches on the impact of the 2008 financial crisis on India, emphasizing the importance of policies for managing economic volatility.

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