Union Finance Minister Nirmala Sitharaman on Monday said there will be additional measures to draw foreign investment into the Indian market.
Speaking at the Hero Mindmine Summit 2026, Sitharaman stated that government measures to exclude foreign investors in G-secs from capital gains tax and withholding tax on interest will be the first step toward attracting foreign capital back.
“Certainly, that’s not the end of story, there will be more. We recognise we need more foreign capital to come in," Sitharaman said.
The minister also highlighted a number of concerns to the Indian economy, including the potential for below-average rainfall this year, volatility in the price of fertiliser and crude oil, and uncertainty in foreign exchange markets.
She said that government had kept enough buffer stocks to deal with any potential disruption in food supplies and was getting ready for a less favourable rainfall season.
The minister stated that in addition to the lack of rainfall this year, India faces challenges related to uncertainties over foreign exchange and crude oil prices. She noted that the government is keeping sufficient buffer reserves in case the monsoon fails to continue as expected.
At the same time, the minister also emphasized the increasing strain on imports, especially in light of the disruptions in the world’s logistics and commodity markets. “Raw material imports are under severe strain.," said Sitharaman.
She pointed out that rising transportation and risk-related expenses are having an effect on India’s energy import bill in addition to changes in the price of crude oil.
“In addition to crude, rising insurance and shipping risks are driving up the cost of oil procurement," Sitharaman stated.
Another issue facing the country, according to the finance minister, is the unpredictability of fertilizer markets.
She pointed out that India faces challenges due to the increased volatility of fertiliser prices. She also added that recent tax incentives for sovereign debt were “not the end of the story" and that the government might take more steps to attract foreign investment.
Despite these obstacles, Sitharaman stated that the Reserve Bank of India’s actions and recent tax changes for foreign investors in government securities are expected to encourage capital inflows into the country.
