However, the latest data on NRI deposits is not available.

The $21-billion inflows do not include the $4.2-billion that the State Bank of India raised through the Resurgent India Bonds in August 1998 after the international community placed sanctions on the country protesting nuclear tests conducted in May last year.

The NRI inflows mainly comprised deposits, including foreign currency non-resident (FCNR-B) accounts, non-resident (external) rupee accounts and non-resident (non-repatriable) rupee deposits.

However, NRI investments trickled down to a mere $62million in 1998-99, the lowest since the reforms were unleashed in 1991. NRI investments, which touched a high of $715 million in 1995-96, have been falling down since then and in 1997-98 touched $214 million. In 1996-97 it was pegged at $639 million.

"It clearly reflects that unless another round of reforms are unleashed, direct investment in India will continue to fall," an economist with a leading foreign brokerage said. In April 1999, NRI investment was only $2 million, a RBI report on NRI inflows said.

The fall in the NRI inflows has been in tandem with the fall in direct foreign investement inflows which has fallen to $ 2.46 billion in March 1999 from $ 3.57 billion in the previous year. Sensing the fall in NRI investments, the RBI on March 30 this year announced a series of measures simplifying such investments.

The central bank gave general permission to domestic mutual funds for seeking investments from NRIs/PIOs/OCBs on repatriation/non-repatriation basis apart from allowing domesticcompanies to accept deposits from them on a repatriation basis.

It also gave general permission to NRIs to invest in air-taxi operations and allowed then to sell shares acquired by them under the direct investment scheme on stock exchanges. They were also given general permission to transfer, by way of gift, immovable property held by them to charitable trusts and organisations in the country.

In a detailed circular, the RBI also said that NRIs can lend funds on a non-repatriation basis if the amount of loans is received by inward remittance

The non-resident (special) rupee deposits which were introduced in April 1999 are yet to attract any investments, the RBI statement said. The new deposit replaced the FCNR(A) deposits which has been withdrawn.

FCNR(b) deposits cornered a majority of the NRI deposits by attracting $8.2 billion in April 1999, followed by NR(E)NR despoits which bagged $ 6.27 billion and the NR(NR)RD attracted $6.7 billion. While FCNR(B) deposits fell marginally over the March 1999figure of $8.3 billion, deposits under NR(E)RA gained from $6.22 billion in March 1999. The third deposit remained more or less static.