On the other hand, in a global market awash with liquidity and on the promise of India's growth potential, foreign investors and lenders were willing to take risks and finance investment in India.
Last year (2007/08), for example, India received capital inflows amounting to over 9 per cent of GDP as against a current account deficit in the balance of payments of just 1.5 per cent of GDP. These capital flows, in excess of the current account deficit, evidence the importance of external financing to the corporates and the depth of India's financial integration.