New Delhi: Finance Minister Nirmala Sitharaman on Monday indicated that the Centre could introduce additional measures to attract foreign investments into India, stressing that the government recognises the growing need for overseas capital inflows.
Speaking at the Mindmine Summit 2026 in New Delhi, Sitharaman said the recently announced favourable withholding tax treatment for foreign investors should be viewed only as an initial move and not the final step in the government’s broader strategy to bring more global capital into the country.
Government Looking to Draw More Overseas Investments
The finance minister said India is actively working on policies that can improve the investment climate and encourage foreign investors to bring capital into Indian markets. According to her, the latest measures introduced by the government are part of a wider effort aimed at strengthening external financial flows.
Sitharaman noted that authorities understand the importance of attracting more foreign funds at a time when the global economy is facing multiple uncertainties.
Concerns Over Global Economic Challenges
During her address, the minister also highlighted several external risks that could impact India’s economy. She referred to volatility in crude oil prices, rising fertiliser costs and foreign exchange-related pressures as key concerns for policymakers.
She further pointed to the possibility of a weaker monsoon this year, saying that insufficient rainfall could affect rural incomes and agriculture-linked economic activity. However, she maintained that India currently has adequate foodgrain reserves and there is no immediate concern regarding food shortages.
RBI Measures Seen as Initial Steps
Sitharaman’s remarks come shortly after the Reserve Bank of India announced measures related to FCNR(B) deposits to improve foreign currency inflows. According to Business Today, the finance minister described the government’s latest initiatives as the “first step” towards attracting greater overseas investment.
Reuters also reported that Sitharaman acknowledged the uncertainty surrounding forex markets, oil prices and rainfall patterns, while expressing confidence that recent reforms and RBI initiatives would help support capital inflows into India.
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