Economic Survey 2008-09: Capital flows plunge $58bn, tax sops can arrest fall 3 Jul 2009, 0257 hrs IST, TNN

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The global meltdown and the collapse of overseas capital flow to India had a lesson for policymakers. The Economic Survey for 2008-09 has mooted "internalising externalities" to minimise the impact of a crisis. Global capital flows to India came down to $31 billion in 2008 from a high of $89 billion in 2007 when the growth worldover was high-especially in emerging and developing economies. Even in 2006, capital flows to India were relatively high at $37 billion. The volatility in developed economies, however, had its full impact on emerging nations including India. Global capital flows to emerging and developing economies had tripled from $203 billion in 2006 to $617 billion in 2007. But, with the financial crisis, it collapsed to $109 billion in 2008.

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