"There has been much interest in understanding various dimensions of the growth and integration of emerging Asia with the rest of the world, particularly with regard to international capital flows and external financing. Nonetheless, serious academic work in this area has lagged somewhat...

"Since the liberalisation of the Indian economy in 1991 the country has experienced sustained current account deficits. These deficits were serviced by a massive influx of capital inflows, made possible by the gradual removal of or reduction in restrictions on foreign investments since 1991....