Notwithstanding each entity taking action considered rational, it leads to a bad result as a whole: that state is called a “fallacy of composition” or a “coordination failure” in terms in economics. Japan’s deflation since the latter half of the 1990s is a typical example of that. Let us confirm that point in terms of macroeconomic indicators since the 1990s.
It has broadly achieved the desired outcome for the policy choices it has made, in terms of achieving a stable composition of foreign capital inflow. At the same time, India is on the cusp of some fundamental shifts in this space with increased market integration in the offing and freer non-resident access to debt on  10  the table.