More measures on anvil to attract global flows: FM

Sitharaman: Working to make investments more attractive

- MONIKA YADAV

Finance Minister Nirmala Sitharaman on Monday said more steps will be taken to attract foreign capital into India, indicating that recent measures announced for the bond market were only the beginning of a broader initiative to boost investment inflows.

Speaking at the Hero Mindmine Summit 2026, Sitharaman said the Centre recognised the need for greater foreign capital and was working with the Reserve Bank of India (RBI) in this regard.

Government has taken steps to make bonds more attractive, Sitharaman said, referring to the June 5 announcement of easing foreign portfolio investor (FPI) participation in government securities and the tax exemption given to interest income and capital gain from FPIs' investments in government debt. The government also then gave similar tax relief to the Bank for International Settlements (BIS).

“Certainly that is not the end of the story. We will be doing more,” the minister said. She added that RBI had also created a framework under which public sector undertakings and banks could raise funds overseas, with the central bank bearing the currency hedging risks.

The promise of more steps to woo foreign capital comes at a time the commodity shock from the West Asia crisis has proven to be a test of India's economic resilience and, in the words of chief economic advisor V Anantha Nageswaran, a “live balance of payments (BoP) stress test.”