New Delhi, Oct. 4 -- The record $127 billion in dollar inflows from the foreign currency non-resident (bank) scheme have given India about a year or two to shield the economy from external volatility and push structural reforms to improve the way its current account deficit is financed, said Neelkanth Mishra, the country's executive director at the World Bank Group.

The inflows come at a time when the West Asia crisis has driven up global oil prices, weighing on the external balance of a net energy importer like India.

Every $1 increase in global crude oil price costs India about $1.8 billion a year, Mishra said in an interview. The impact isn't limited to oil, as higher prices could also raise the costs of gas and fertilizers. So, if o...