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Even in real terms, rate differential, at 484bps, on WPI basis is much higher than the average of +50bp since January 2003. On CPI basis, the real rate differential, at 210bps, is also way higher than the average of 70bp since January 2003. In any case, the FII equity portfolio, that responds to growth, at USD 325 billion, is 6.5x of the FII debt portfolio that may respond to interest rates, at USD 50 billion.
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