5 - year period 2003 – 08, there was a sharp increase in capital inflows to an annual average of us $ 45 billion. the composition of inflows continued to be towards equity, though its share moderated slightly to 53 per cent. however, within equity there was a shift towards portfolio investment. the debt flows were dominated by trade credit and external commercial borrowings. during the recent 3 - year period of 2008 – 11, net capital inflows moderated to an annual average of us $ 39 billion. the composition of capital inflows continued to be towards equity inflows with equal share between fdi and portfolio investment. the debt component was dominated by external commercial borrowings ( tables 3 ). table 3 : relative share of debt and equity in capital flows note : equity debt composition of capital accounts excludes other capital another discernible trend that emerged since the mid - 2000s is the sharp increase in india ’ s outward fdi suggesting increasing external orientation of the indian corporates. india ’ s outward fdi peaked from us $ 2. 2 billion in 2004 – 05 to us $ 19. 4 billion in 2008 – 09 before moderating somewhat to us $ 16. 5 billion in 2010 – 11 ( chart 3 ). this underscores maturing of india ’ s capital account liberalization process which has encouraged two - way flows. how did this rising trend and shift in composition of capital flows impact the bop? this is an issue, i turn to next. bis central bankers ’ speeches an inward looking indian economy with a restrictive capital account regime, which was biased against equity inflows, was highly vulnerable to external shock. hence, a widening of current account deficit ( cad ) to 3. 0 per cent of gdp in 1990 – 91 in the wake of the gulf war and crude oil price spike was not clearly sustainable ( table 4 ). prior to 1990 – 91 also india had periodically faced significant external financing constraints and went knocking at the doors of the imf from time to time. following the wide ranging reforms initiated in the 1990s, which encompassed both trade and financial liberalization, the resilience of the india ’ s external sector improved vastly. table 4 : key components of bop as a percentage of gdp during 1992 – 2003, india ’ s current account showed a modest annual average deficit of 0. 6 per cent. given a capital account balance of 2. 2 per cent of gdp, there was accumulation of foreign exchange reserve of 1. 6

ravi menon : mas ’ annual report 2014 / 15 remarks by mr ravi menon, managing director of the monetary authority of singapore, at mas ’ annual report 2014 / 15 media conference, singapore, 21 july 2015. * * * 1. highlight six areas. • economic growth – weaker than expected but not likely to deteriorate further • inflation – coming in at lower half of forecast range • monetary policy – considerations driving recent decisions • mas ’ financial performance – stable investment gains amidst volatile currency translation effects • consumer initiatives – helping singaporeans manage their finances • financial centre development – broad - based growth across all segments economic growth economy clearly lost some momentum in q2 2. real gdp contracted by 4. 6 % in q2 on qoq saa basis • trade - related industries declined, dragged down by weakness in pharmaceuticals, marine & offshore engineering, and electronics. • domestic - oriented industries pulled back after strong performance in q1. but growth momentum not expected to deteriorate further in h2 3. first, global and regional economic recovery remains broadly intact – should provide support for singapore ’ s outward - oriented sectors. • us economy has regained momentum. o o o • pmi readings show manufacturing and services sectors expanding. consumer spending should be buttressed by strengthening labour market. in china, picture is mixed. o • contraction in q1 largely weather - induced. excess capacity has been weighing on production. o but monetary stimulus and steady pipeline of infrastructure projects will support growth in h2. o latest indicators, including services and manufacturing pmis, suggest economy is stabilising in asean, o o pick - up in infrastructure spending should support domestic demand strengthening us economy should provide gradual uplift to exports 4. second, domestic non - tradable sectors should remain resilient. • construction industry will be supported by further capacity expansion in transport infrastructure. bis central bankers ’ speeches • demand for services such as education and healthcare expected to stay firm. 5. third, financial services should continue to pull up overall growth. • underpinned by bank intermediation, fund management and risk management activities, reflecting demand from both domestic and regional markets. so, growth was weak in h1 but is not expected to weaken further. 6. on yoy basis, gdp growth came in at 2. 3 % in h1 2015. 7. mas and mti are reviewing growth forecast for 2015, taking into account weaker outturn in h1 as well as support factors in h2.