New Delhi: Union Finance Minister Nirmala Sitharaman has indicated that the government’s recent measures to attract foreign capital are only the beginning, stating that additional reforms and policy initiatives are being planned to boost foreign investment inflows into India. The announcement comes amid global economic uncertainty and efforts to strengthen India’s position as a preferred investment destination.
Speaking at the Hero Mindmine Summit 2026, Sitharaman said India recognizes the need for greater foreign capital inflows and is working closely with the Reserve Bank of India (RBI) to ensure that markets receive adequate investment support. She emphasized that the recently announced bond market reforms are “not the end of the story” and that further steps will follow.
Bond Market Reforms Just the Beginning
The Finance Minister highlighted recent reforms that allow public sector undertakings and banks to raise funds from overseas markets. She noted that the government sees the bond market as an important avenue for attracting long-term foreign capital into the country.
Earlier this month, the government announced a series of measures aimed at deepening India’s capital markets and making investment easier for foreign investors. These included liberalizing investment norms for overseas investors, expanding access to government securities and providing tax exemptions on interest and capital gains from certain government bond investments.
Focus on Long-Term Foreign Capital
According to Sitharaman, India requires sustained inflows of foreign capital to support economic growth, infrastructure development and expanding investment opportunities. She stressed that attracting stable, long-term investors such as pension funds, insurance companies and sovereign wealth funds remains a key objective.
The government recently expanded the Fully Accessible Route (FAR) for foreign investors in government securities and eased several restrictions on Foreign Portfolio Investors (FPIs), making Indian debt markets more attractive to global investors.
Managing Global Uncertainty
Sitharaman noted that India, like many economies around the world, is facing challenges arising from geopolitical tensions, supply chain disruptions, commodity price fluctuations and trade uncertainties. Rising crude oil prices and increased shipping and insurance costs due to instability in West Asia have added pressure on the country’s import bill and foreign exchange requirements.
She emphasized the importance of maintaining strong foreign exchange reserves to manage external risks and ensure economic stability. India’s large domestic market and growing consumption levels, she said, provide a significant cushion against global shocks.
Data Centres and GCCs Driving Growth
The Finance Minister also highlighted the rapid expansion of India’s data centre and Global Capability Centre (GCC) ecosystem. She said growth is no longer limited to major metropolitan hubs such as Bengaluru, Hyderabad and Delhi-NCR but is increasingly spreading to Tier-2 cities, creating employment opportunities and boosting local economies.
According to Sitharaman, state governments are actively engaging with investors and developing policies to attract technology-driven investments, reinforcing India’s position as a global business and innovation hub.
Strengthening India’s Investment Appeal
The government’s broader strategy focuses on simplifying investment procedures, reducing compliance burdens and improving ease of doing business. Recent reforms have expanded investment limits for overseas investors and streamlined market access mechanisms to make India more competitive globally.
As India continues to be one of the world’s fastest-growing major economies, policymakers believe that further reforms and a stable macroeconomic environment will help attract higher levels of foreign investment and support the country’s long-term growth ambitions.
