The present book attempts to study and quantify the impact of private foreign capital inflows on selected macroeconomic variables in India using time series data from April 1995 to December 2008. The study also examines the trends and composition of international capital flows as well as its impact on economic growth and then suggests some policy implications thereof. The topic of the study is highly relevant to current issues like globalization and volatility of international capital flows. The objectives are quite lucid. The book stretches into seven chapters. The introduction chapters adequately cover the background, the issues and objective of the study and review of literature. The main thrust of the book lies in the chapters third, fourth and sixth. The study also contains sufficient review of a good number of relevant research works. It uses the appropriate models like Vector Autoregressive (VAR), Engel-Granger two-step cointegration procedure (1987) and Pair-