NEW DELHI: India is likely to see flight of capital from its equity and debt markets in the next six months as global investors hesitate to pour money outside the US because of the European debt crisis, a FICCI survey said on Sunday.
"With deleveraging (belt-tightening) expected to continue in the global markets, there is likely to be flight of capital from equity markets in emerging economies, including India," the chamber said, quoting the views of economists. It said debt flows could also be impacted.
The unfolding events on the global economic landscape, particularly in Europe, would also result in a tight liquidity position in the coming months, it said.
Finance minister Pranab Mukherjee, who is attending the G-20 ministerial meeting in South Korea, had said that if the recovery in Europe and the eurozone is retarded, it may have an adverse impact on India.
