India, compared to most emerging markets, has taken a rather laissez-faire attitude towards capital inflows this year. Given India's demographics, and its enormous need for capital investment, this is not a bad strategy. It is okay to run relatively large current account deficits now (financed by foreign capital), if in the future you are able to run offsetting current account surpluses.
An Interesting Interview (conducted by FT's Amy Kazmin) with Gita Gopinath of Harvard U. regarding policy challenges facing India (in the context of Fed's QE2 and rush of capital into emerging markets)
http://link.brightcove.com/services/player/bcpid590314128001?bctid=675305984001
(Wait a few seconds for the video to load)
(As an aside, not all economists are dorky looking ... as evidence see Prof. Gita Gopinath)