Sameer Goel of Deutsche Bank told CNBC-TV18 that the pullout of FIIs from emerging markets was a pan-Asian phenomenon due to volatility in these markets. He added that the India's deficit problems and rupee depreciation was impacting these flows to the country.
It will take India some tough decisions and several years before it can think of going back to a growth era of 8 per cent and more, which was an easy walk through till a few years ago, IMF has said.
India's current deficit may soar to a record high in the September quarter on high non-oil imports after briefly narrowing in the June quarter, which could make the rupee susceptible to a sudden reversal in capital inflows, Nomura said.
The Reserve Bank of India (RBI) announced further measures on Monday to curb speculative trading in the foreign exchange market, but the move failed to halt the rupee's slide to another record low.