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I am confused -

  1. if suppose currency depreciates then assets will become cheaper and foreign investors will find it enticing to buy these assets so in that case, foreign inflows shall increase
  2. In economic survey (a government of India document) however, states that depreciation of currency disincentivize the FPI

So please explain what will be the outcome and why? I will be grateful for your help. Thank you so much.

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  • 1
    $\begingroup$ Is this Indian government document publicly available? $\endgroup$ – Brian Z Jun 1 at 18:57

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