Date Added: Sep 2010
In this age of transnational capitalism, a significant amount of capital is flowing from developed world to emerging economies. Portfolio investments brought in by FIIs have been the most dynamic source of capital to emerging markets since 1990s. Since the beginning of liberalization in 1990s, FII flows to India have steadily grown in importance. From a near absence of FII inflows till 1992, today such inflows represent a dominant proportion of total flows. Positive fundamentals, gradual removal of structural barriers combined with fast growing markets have made India an attractive destination for foreign institutional investors.