Almost $9 billion of the total private inflows into India came in the form of subscription to bond issues and loan commitments, the World Bank report on "Global development finance, 1998"' said. Portfolio equity flows, however declined, the report said.

Pakistan's net private flows stood at less than $2 billion during the period while some of South Asia's smaller countries even had negative private flows, the report.

The level of foreign direct investment (FDI) in India registered a $500 million increase during 1997 to touch $3 billion, the report said adding Pakistan's inflow through this channel stood at less than $1 billion during the period.

Smaller current account deficits enabled countries in South Asia to remain relatively unaffected by the East Asian financial crisis, the report said.Pakistan was, however, a exception and had a high current accountdeficit, it added.

The average GDP growth in South Asia declined from 6.4 per cent in 1996 to 5.6 per cent in 1997 because of stagnation in India's industrial sector and a slowdown in Pakistan's agricultural output.

South Asia could remain insulated from the East Asian crisis due to prevalent financial sector controls that prevented lending booms and policy of banks in the region to keep short-term external debt at low levels.

The World Bank study attributes the stock market crashes in India and Pakistan during November mainly to the fall of government in India and the judiciary crisis in Pakistan.

On aggregate resource flows to South Asia, the report says debt flows increased by $2 billion during 1997 from $13 billion in 1996 to $15 billion in the subsequent year.

In contrast grants were stable at about $2 billion and equity flows were slightly lower during the period as portfolio equity in the region dropped to $3 billion.