In running around looking at what�s what in India, we found an interesting report from the India section of SeekingAlpha by�Howard Scott�concerning the development of the Indian economy.

Scott writes:

India’s rupee rose, in the biggest quarterly gain in 3 1/2 decades, as the world’s second-fastest pace of economic growth and a $1 trillion stock market attracted overseas investors. The currency gained 6.8 percent this quarter as the government allowed the rupee to advance to make imports cheaper. India’s current account showed a surplus, for the first time in a year, in the three months through March, as software exports increased and oil imports slowed, a report showed yesterday.

Commerce and Industry Minister Kamal Nath expects that foreign investment may double to $30 billion this fiscal year and India’s 300 million strong middle class are buying more imported goods. Share sales may double this year to an all-time high, buoyed by demand from investors attracted by the fastest pace of growth in almost two decades, JPMorgan Chase & Co. said.

The currency had its fourth straight quarterly advance as overseas investment in local equities more than doubled in the week through June 27 from the previous five days. The rupee also advanced on speculation that banks will buy it to increase their local-currency holdings as borrowing costs in the local money market increase.

“Capital inflows continue to be strong, providing support to the rupee,” said V. Rajagopal, chief currency trader at Kotak Mahindra Bank Ltd. in Mumbai. “Money is coming in various forms such as stock market inflows, export earnings, corporate borrowings and direct investment.”

This just further supports our observations concerning the heating up and increased popularity of FDI into India, backed up by the Asian FDI boutique legal/tax consultancy Dezan Shira & Associates opening up three offices there earlier this week.

To read the rest of the SeekingAlpha report click here.

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