Rising capital inflows into India are not a concern now and authorities are monitoring the situation, Finance Secretary Ashok Chawla said on Wednesday.

"The flows have increased in the recent past, that was expected," he said.

Money has been coming in, as of now it is not a cause for concern."

On Tuesday, a Reserve Bank deputy said India faced a dilemma of needing to contain rising inflation while trying to support growth and managing foreign capital inflows.

"While we are watching the situation, the Reserve Bank of India and Securities and Exchange Board of India are seeing what is happening in terms of inflows in the equity market. We don't see the need for any specific action in this regard," Chawla said.

Chawla said India's economy was unlikely to reach growth rates of 8-9 percent until exports revived.

Earlier this month, the trade minister said exports may start growing in annual terms from the March quarter.

India's September trade deficit shrunk to USD 7.77 billion and imports fell 31.3 percent year-on-year to USD 21.38 billion, according to government data.