New Delhi, May 14 -- It's the best of times. It's the worst of times. Charles Dickens wasn't an economist, not by far, but his immortal lines in A Tale of Two Cities perfectly captures India's macroeconomic dilemma today.

Gross domestic product (GDP) growth has averaged above 6%, making India one of the world's fastest major economies. Inflation has been under control, kept well below the Reserve Bank of India's (RBI) mandate of 4%.

Last year, the current account deficit (CAD) was barely half the consensus 'ideal' level of 2% of GDP. Just a few months ago, RBI governor Sanjay Malhotra used the term 'Goldilocks economy' (for satisfactory growth and inflation rates).

However, it seems global investors are not impressed. Net foreign portf...