The concern though is that infrastructure, by its very nature, needs long term finance, and volatile flows chasing short-term returns do not meet the need. In order to support infrastructure investment, we have made, and are making, efforts to deepen the corporate bond market. We had also enhanced the limits for FII investment in corporate bonds.
Foreign exchange reserves beyondbrics reader: Should India continue to accumulate USD and follow US interest rate policies? In the name of earning export dollars, maybe we are selling our resources and services for a currency of diminishing value. DS: To deal with sudden stops and reversals of capital flows, a certain level of foreign exchange reserves is necessary.