calibrated and carefully sequenced phases, considering prevailing conditions in the local and global economy, and ensuring that measures are in place to allow the bsp to continue to capture data on these transactions for analysis of developments, policy review and crafting of appropriate measures. this started with further liberalization of fx rules covering foreign loans which the monetary board approved last december 21, 2017. it features the lifting of prior bsp approval for purely private sector foreign loans that can be serviced from the banking system. further, registration processes were streamlined, registration fees were waived, and documentary requirements were further reduced. a window was likewise opened for six months providing an amnesty period during which private sector loans previously obtained without prior bsp approval can register and be eligible for servicing from the banking system. these changes commence on january 15, 2018. we are currently drafting further amendments to adopt similar measures on trade and non - trade transactions, and on foreign investments. the bsp also closely monitors for signs of excessive credit and leverage. we stand prepared to deploy appropriate measures such as macroprudential policies to prevent economic overheating. in this regard, the bsp intends to build on its existing frameworks for market surveillance and risk management to help identify and mitigate the build - up of systemic risks at an early stage. we have remained vigilant and proactive as we launch new and ambitious reform initiatives. these provide the solid foundation for confidence in our prospects for 2018 and beyond. just this december, fitch ratings upgraded the country ’ s credit rating anew, noting that sound policies and strong investor sentiment continue to underpin the country ’ s growth momentum. price stability : targets and results in 2017, consistent with market expectations and projections, inflation slightly rose due mainly to higher international crude oil prices. nonetheless, average inflation stayed firmly within the national government ’ s target range of 2 - 4 percent. we expect inflation to remain within target range until 2019. however, further increases in global crude oil prices may result in inflation trending in the upper bracket of the target range. once the national government ’ s tax reforms take effect, there could be some transitory pressures on prices. on the whole, these reforms will result in productivity gains over the medium term. also with these tax changes in mind, bsp looks out for possible price spirals. you can count on us to timely adjust the monetary policy stance to ward off any threat to our inflation target. meanwhile, further refinements to the interest rate corridor

determined by, inter - alia, global investor sentiment i. e. risk - on – risk - off sentiment, investment climate in the destination country and its credit rating. expectedly capital flows into india have slowed in the recent times ; the figures of q1 of 2012 – 13 except for non - resident deposit flows have particularly been very disappointing. ( table 2 ) bis central bankers ’ speeches a number of policy measures have been undertaken to augment the capital flows into india given the general risk - off sentiment prevailing the global markets. with deregulation of interest rate on nre deposit schemes and increase in the spread for fcnr ( b ) deposits, greater non - resident indian ( nri ) deposit flows have been facilitated. in 2011 – 12, nri deposit flows witnessed a sharp rise of more than 200 per cent and stood at us $ 11. 9 billion as compared with an inflow of us $ 3. 2 billion in 2010 – 11. in addition, remittances facilities for indian expatriates have been streamlined given the fact that india remains the largest remittance receiving country and such flows have huge beneficial impact for bridging the cad. there has been calibrated enhancement in the investment limits for the fiis in sovereign and corporate bonds. the limit on investment in g - secs has been enhanced to us $ 20 billion from us $ 15 billion. long term investors like sovereign wealth funds ( swfs ), multi - lateral agencies, endowment funds, insurance funds, pension funds and foreign central banks have now been permitted to invest in government securities. the limit on investment in corporate bonds has been enhanced to us $ 45 billion from us $ 40 billion and the holding period and residual maturity requirements for bonds in the infrastructure sector have been reduced. a new scheme allowing the qualified foreign investors ( qfis ) to invest upto us $ 1 billion in corporate bonds has been introduced. a number of measures like increasing the limit for availing of ecb under the automatic route, increasing the limit for refinancing the rupee loans out of ecbs, new us $ 10 billion scheme of ecbs for export earners, etc. have been taken to rationalize the regulatory framework for ecbs. all these measures are expected to augment capital flows into india. given the increasing vulnerability of the external sector reflected in increasing short term debt to total debt ratio, debt service ratio, fall in the import cover of our reserves and reserves to external debt