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Fm Sitaraman in Lok Sabha

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”. “

“FIIs and REITs came and went. But, today, Indian retail investors have proven that even if they come and go, any shocks that may arise are now supported due to the absorptive capacity shocks that Indian retailers have brought to the Indian market,” she told Question Time.

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“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Pointing out that foreign investors have so far withdrawn more than Rs 1.14 crore from the Indian market, Tharoor had urged the finance minister to explain the worrying trend of “steady” decline in investment by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.

The congressman had also asked the government what steps were being taken to reverse the trend. “FPIs and FIIs are obviously going to be very typical in their very nature and come and go. But what there is to look at with fairness and objectivity is the influx of IDFs which remains unchanged,” he said. she stated in her reply.
“India has been the biggest receiver of FDI since pre-COVID and it continues very significantly during COVID and afterwards as well,” she said.
“That’s what tells whether the money coming in is staying invested in this country, creating jobs and opportunities for us, not by FIIs and REITs,” she added.

First post: STI

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