the government for early adoption of a law granting special rights to foreign plant and seed breeders in the Indian market.
Foreign in vestors, on their part, are playing a deft cat and mouse game in the Indian market. There is a move by international credit-rating agencies to further downgrade India because of the uncertain political conditions. This is obviously intended to raise the cost of foreign direct investment as well as that of raising capital abroad. Foreign institutional investors have stepped up speculative trading on the Indian stock markets. Capital inflows for speculative purposes which are currently the main factor boosting the prices of stocks and shares may be adding to exchange reserves, but this does not indicate the strength of the Indian economy but actually exposes its vulnerability.
