But given the urgent need to increase FDI flows as well as the fact that the Telenor/Sistema threat has receded, the government has done well to put on the backburner the proposal to review BIPAs—once the government auctioned spectrum following the cancellation of the licences, Telenor won bids in 6 circles while Sistema (through its JV with Shyam Telecom) won 8 circles and both companies withdrew their threat to take action under various BIPAs. While FY13’s current account deficit (CAD) is projected to be 4.8% of GDP, what’s made this worse is the manner in which this is being financed. While a little over 100% of India’s CAD was financed by FDI inflows in FY08, this is now down to around a fourth. FDI inflows rose more than 10 times from just $4 billion in FY01 to $46.55 billion in FY12, but in the April-January period of FY13, these fell 39% vis-a-vis the same period in FY12. The rest of the CAD is now being financed by FII and other volatile capital flows. As a result, while short-term debt has risen from 16.2% of total debt in FY07 to 22.5% in FY12, the share of volatile capital flows to reserves has risen—according to the RBI Financial Stability Report—from 67.3% at the end of March 2011 to 81.3% at the end of June 2012. In time, India will do well to review various BIPAs, but this is clearly not the time to do it.