India remains the main recipient of FDI, and Indian retail investors have created the capacity to absorb the shock from the outflow of foreign funds from the country’s stock markets, Finance Minister Nirmala Sitaraman told Lok Sabha.
Responding to a question posed by Congressman Shashi Tharoor in Lok Sabha, she said foreign investment needs to be assessed, not just looking at FIIs and REITs which by nature are interest rate dependent and continue to “ascend and descend”. “
“We in the House should stand up and appreciate the Indian retailer who has invested a lot of faith in Indian markets today,” she added.
Pointing out that foreign investors have so far withdrawn more than Rs 1.14 crore from the Indian market, Tharoor had urged the finance minister to explain the worrying trend of “steady” decline in investment by foreign investors.
First post: STI