67% of foreign deals in August were asset sales, shows analysis

Large flows pose a challenge to managing rupee appreciation

The large inflow of foreign money in recent times is more likely to help deleverage indebted promoters than aid the setting up of new factories and other investments that could generate new jobs.
 

Around 67 per cent of the deals made in August were asset sales, shows an analysis of Bloomberg data. While this isn’t always the case (it was less than 1 per cent in July), there does seem to be limited incentive for foreign investment in the creation of new capacity that could generate new jobs.
 

Sreejith Balasubramanian, economist — fund management, IDFC Asset Management Company, said there