An Analysis of Non-Debt Creating Inflows and Debt Creating Inflows into India after New Economic Policy

Abstract

This paper examines the trend and relationship between non-debt creating inflows and debt creating inflows into India after new economic policy. This study explains the non-debt creating inflows and debt creating inflows, especially non-debt creating inflow is very high inflows compare to debt-creating inflows of Indian Economy. Because, of the Foreign Direct Investment key role in the non-debt creating inflows. It is important for the government to move forward by adequately preparing the economy for capital inflows. Not doing anything is not an option, and such an approach risks the government being blamed for spoiling the India story. Undertaking more economic reforms is not easy but has to be done the government can either manage the process or competitive forces will bring it upon us in a asymmetrical manner. So, non-debt creating inflows and debt creating inflows enormously increased after adopted New Economic Policy into our economy.