5  7  outstripping debt flows (FPI Debt plus ECB). The gradual liberalization of capital inflows has been consistent with the realization of the preferred composition of capital inflows. 16. The focus on capital outflows has understandably been far less given that India’s priority is to attract foreign capital to fund its savings gap.
There is basically one channel – Overseas Direct Investment (ODI). The Liberalized Remittance Scheme (LRS) for individuals, while it is open for both current and capital account transactions, is largely (more than 90%) in current account transactions like travel, studies etc. Issues for wider debate 17.