Govt working to boost foreign investment inflows, says Sitharaman

Finance Minister Nirmala Sitharaman said the government will introduce additional measures to attract foreign capital, noting bond market reforms are only the beginning. She highlighted RBI steps, global uncertainties, and India’s need to strengthen foreign exchange reserves amid rising external risks

New Delhi: Finance Minister Nirmala Sitharaman said on Monday that the government would be taking further steps to attract more foreign capital into the country, and the measures announced for the bond market were only the beginning.

In her address at the Hero Mindmine Summit 2026 here, Sitharaman said: “We recognise we need more foreign capital to come in. But the fact that the RBI has now allowed public sector undertakings and banks to go out and raise money from outside is not the end of the story. We will be doing more.”

---

The government recognised the need for greater foreign capital inflows and is working with the Reserve Bank of India (RBI) to ensure markets receive the required investments, she added.

“We believe the bond market can be a good way to absorb the capital coming in. As of now, we have done it only for government securities. Certainly, that is not the end of the story. We recognise we need more foreign capital coming into the country,” the Finance Minister observed.

Sitharaman further stated that India’s foreign exchange reserves need to be adequate to meet the growing demand. The country has a large domestic market with consumption going up, which is a comfort, she added.

The Finance Minister highlighted that India, like businesses across the world, is facing uncertainty from factors beyond its control, including tariffs, fluctuations in commodity prices, and disruptions in global supply chains. While India’s large domestic market provided a cushion, the country remained dependent on imports of several critical intermediary and raw materials, exposing it to external shocks.

According to Sitharaman, rising crude oil prices, higher insurance costs, and shipping-related risks were among the factors affecting India’s import bill and foreign exchange requirements.

“Not only is the price of crude a challenge, but insurance cover and risk of crude vessels passing through the Strait of Hormuz is also high. India must maintain adequate foreign exchange reserves to manage rising external demand,” she said.

Highlighting the volatility in the fertiliser market, she said global supply conditions had changed multiple times since the Union Budget was presented. While concerns had emerged over shortages after some traditional suppliers reduced exports to build domestic inventories, the re-entry of China into the export market after nearly a year had eased some of those fears.

The Finance Minister also said that India’s data centre and GCC ecosystem is expanding rapidly, driven by proactive policies and strong engagement from states. What was once concentrated in Bengaluru, Hyderabad, and Delhi NCR is now spreading to Tier 2 cities like Tumakuru and Mangaluru. It will mean more jobs, stronger data security, and a boost for local economies. Centre is engaging with states to make sure the data centres and GCC policies are understood, she said.

States had not only framed policies but were also proactively engaging with investors to attract GCC and data centre projects, she added.

“And people have not treated it as, ‘Oh, what is this? What’s a data centre?’ No, there is a layer of our Indian technicians and youth who are catching on to this very easily,” Sitharaman remarked.