Business Case Studies, Macroeconomics Case Study, Bhutan’s Gross National Happiness: An Economic Reality or Wishful Thinking?

print page
Tell A Friend

Case Categories

Macroeconomics Case Study

Case Title:

FII In India: Is It Making The Economy Vulnerable?

Publication Year : 2010

Authors: S Datta, S Chaudhuri and C Rao

Industry: General Business


Case Code: MAC0024IRC

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

The Indian government stretched the upper limit on FII (foreign institutional investment) in both the government and corporate sector. This move was expected to boost the Indian stock market, as more foreign investment was expected to flow into the capital market. However it was argued that India's reliance on FIIs to create a large foreign exchange market might ultimately make the economy vulnerable. The reversal of the flows might destabilise the exchange rates, affect the economy's financial sector and ultimately disrupt the economy.

Pedagogical Objectives:

  • To understand FII and its significance as a source of foreign capital in emerging capital markets.
  • To understand the pre- and post-liberalisation scenario in India and the policies adopted by government to attract FII.
  • To understand the relationship between the FII inflow and the Indian stock market and the volatility associated with the inflow of FII.

Keywords :  FII inflows, Emerging capital market, Post liberalisation period, Stock market, SEBI registration, Liquidity, Financial crises, Contagion effect, Foreign exchange reserves, Currency appreciation, Export competitiveness, Current account deficit, Structural changes

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap