RBI says prefers stable, long-term FDI

The Reserve Bank of India prefers long-term and stable flows through foreign direct investment into the country over short-term foreign institutional investment, Governor Duvvuri Subbarao said on Tuesday.

He also added that RBI's primary concern is to maintain price stability.

The RBI raised interest rates last week for the eighth time in 12 months, in line with expectations, and warned both of inflationary pressures and emerging risks to growth.

The fight to contain the relentless march of inflation, especially in food prices, has become the focus of the central bank and the federal government in past few months.

India's wholesale price index rose an annual 8.31% in February on higher fuel and manufactured product prices, well above Reuters forecast of 7.79% and higher than January reading of 8.23%.