India receives 15 billion USD in foreign investment. How can we sustain it?

Most of the analysts and some policy makers believe that capital flows are a bit excessive and this should be curbed. There is no denying that a major policy challenge here is to maintain macroeconomic stability in the face of capital inflows that may not match outflows in timing. As investment is typically prefunded, capital will flow in before it goes out as imports and profits. And this is true for FDI, portfolio inflows, and fixed income lending.

Both FII and FDI are benificial to India because in the former the stock prices can reflect the exact state of the economy and it will be easier for companies to raise credit. In the latter it can create job opportunities and infrastructure for improving the wealth of the nation for the future.

Macro economic stability for a nation can be attained and is relevent only when it reaches the full employment equilibrium. Lesser than this point it is just investments which will lead to such a scenario. In India 65% of employed are in Agricullure which nobody knows how long is sustainable. The rest of the 35% majority are in grey market  employment which per se is unaccountable as regular jobs like hawking, house hold helpers, common labor etc;. To release these elements to standard work Investments are required at large volumes and any amount of foreign support in this area is too much.

if foriegn investment is to be retained in india then it should open its doors for investment in  key industries such as agriculture,heavy electricals,infrastructure projects et al.such an endeavour will have twin effect on economy one would be creation of employment locally and on the other hand providing strong fundamentals for growth .if we take agriculture into consideration ,where govt has miserably failed in providing necessary infrastructure (i,e. artifical irrigation, effective drought tackling mechanism.)where foreign investment can be welcomed from the nations who have changed there agricultural scenario through deployment of such methods against prevailing water/rainfall shortage.our agri output is heavily reliant on monsoon and we don't have long term alternatives to fall back upon.adequate technology imports through govt/private bonds with a minimum lock in period (so as to retain it) should be introduced .such practices can be adopted in case of infra projects either.

Given India's strong medium term fundamentals, it is quite clear that foreign investor interest in India is here to stay at the moment. And the timing of such heightened interest is indeed a great sign as it coincides with the government's recognition of the urgent need to kick infrastructure investment into high gear. So the right strategy is to rapidly put in place reforms of financial, labor and product markets to absorb these inflows in an effcient manner.

Every person  keenly interested to invest their hard earn money only those portfolio  of  Financial Mgt./ Financial Instruments which can provide safety & security of thier funds. which having character of  liquidity for short terms funds investment as well as long term income generator alongwith sustainble fund value growth. To achive this objective of fund provider every fund manager agency must assure to investor that they will invest their valuable funds on those instruments whicha are safe & secured for investor point of view. Therefore now, Fund  Manager responsibility is that to segregate the funds in various kinds of Finacial instruments keeping the view of short term as well as longterm returns & growth of Fund in current economics scenrio in any country. If govt. of any country give promise to investor alongwith fund manager then could we will be able to attract more and more funds towards our destination . And we can use these funds for our country economics growth & development of country infrastructure . If we are unable to attract funds towards our destination then we called looser and it adversely impact on our economics growth and development