India a parking lot for investors: Nath - Hindustan Times
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India a parking lot for investors: Nath

PTI | By, New Delhi
Oct 30, 2007 12:59 PM IST

Kamal Nath says capital flows in the market taking it to the 20,000-point mark "sometimes causes concerns" for the government.

India is emerging as a "parking lot" for global investors, but the capital flows in the market taking it to the 20,000-point mark "sometimes causes concerns" for the government, Commerce and Industry Minister Kamal Nath said on Tuesday.

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"The Sensex yesterday moved to the 20,000 mark. Sometimes it concerns us," he said at the Fortune Global Forum in New Delhi.

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However, Nath said strong fundamentals of the Indian economy would ensure flow of funds in the country.



"With the strong fundamentals and PE ratio, India is emerging as a major parking lot for investors," he said.



The country has seen foreign institutional investments surge to a record 17 billion dollars this year. In October alone, FIIs have pumped in nearly 8 billion dollars. The flows soared after the US Federal Reserve cut a key rate on September 18.



Speaking at the event, Finance Minister P Chidambaram also said the country needs to put in place appropriate regulations to manage the capital inflows.



"Today in India, we face a problem of enormous capital flows. This is a completely new situation for us. We welcome capital but we must learn how to manage capital, how to absorb capital," he said.



"We need to put in a place appropriate regulations, we have to put in place risk management systems," he added.

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