Juxtapose this with Indias forex needs in FY13, and the implications of GAAR become clear. As compared to the FY12 current account deficit of $78 billion, analysts expect the FY13 CAD to be in the region of $65-70 billion, largely due to the fall in oil prices. Where does this CAD get financed from If you assume FDI inflows for FY13 at $22 billion, the same as FY12, that leaves around $45 billion uncoveredthe FDI target looks ambitious given the lack of reforms, but let that be. The rest will have to come from FII and banking capital like NRI depositshigher interest rates will help the latter, but increased FII flows are vital. What makes things worse (http://goo.gl/echmV) is that, with investors turning risk-averseas evidenced by crude prices fallingFII and other such inflows tend to remain low. But try explaining larger strategic objectives to the taxman.