New Delhi, June 2 -- International capital flows are once again in the spotlight. First, the International Monetary Fund reports that global current account imbalances are widening once again. This means net-exporters are exporting more while the net importers are importing more. These imbalances in earnings from foreign trade have important implications for the movement of money across national borders.

Second, India is struggling to pull in enough global capital to fund its current account deficit, which is expected to be around $85 billion, if not more, in fiscal 2026-27. We seem to be headed for a third consecutive year with a balance-of-payments deficit. The rupee has been under pressure in the foreign exchange market because of thi...