During 2019–20 so far (up to September 13), portfolio equity outflows were of the order of $ 1.4 billion but lower than $ 2.9 billion in the corresponding period a year ago. Net inflows into the debt market of $ 4.1 billion have, however, provided relief.
Moreover, these portfolio capital movements have turned out to be conduits of global spillovers, impacting domestic equity, debt and forex markets, and asset prices. Nonetheless, the underlying resilience of India’s external sector, anchored by the positive features I set out earlier, have cushioned these shocks and insulated the domestic economy. Managing the External Sector 7.