Everybody is talking about falling investments in the Indian economy because of the gloomy indian outlook based on falling markets and ever increasing inflation. Although, this does not project the real story.

If we look at the recent history of fresh investments in the country, which really matters at the end of the day rather den FII's. It was Rs 66,895 crore in 2005-06, accelerated to Rs 1.10 lakh crore in 2006-07, and further to Rs 1.44 lakh crore in 2007-08. Now with these figures, if we compare them with the most recent numbers as shown by CMIE (Centre for Monitoring Indian Economy) The fresh investments stand at Rs 1.96 lakh crore in July.

Does tat mean investors have no effect of all the negative news in the market?
What i think is that all these fresh investments were the result of huge Indian consumer demand, which as of now has taken a bit of hit. But with corporates confidence still in tact, CMIE is expecting an increase in the investments in the coming months. So lets see how long this trend will continue.......

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