Capital flows to India will almost double to USD 33.9 billion (Rs 1,59,003 crore) in the current financial year from an estimated USD 17.3 billion in 2008-09,riding on an improved sentiment for the country's economic growth,says financial services major Morgan Stanley. "We expect improvement in capital flows to USD 33.9 billion in FY2010 and USD 41.3 billion in FY2011 compared to USD 17.3 billion (estimated) in FY2009," Morgan Stanley economist Chetan Ahya said in a report. The report stated that decisive mandate in the elections in favour of Congress-led UPA has fueled hopes that the new government would bring in reforms which may help boost the country's economic growth. "The improved sentiment for the country's macro outlook driven by strong political mandate and economic reforms expectations should help India increase its overall share in capital flows allocated to emerging markets," the report added. Morgan Stanley report stated that in line with the deterioration in the global capital market environment,capital inflows into the country declined during the quarter-ended December 2007,despite the attractive long-term investment story.
