Union Finance Minister Nirmala Sitharaman has said that Indian retail investors have believed in Share Market and has built such capacity to cushion the shock caused by outflow of foreign funds that could lead to market volatility. In response to a question in the Lok Sabha, Sitharaman said that India still remains the largest receiver of FDI.
F . Interest rates are a major factor in terms of inflows fromforeign portfolio investors (FPIs) and foreign institutional investors (FIIs), who depend on the same and may be attracted by better interest rates and prospects in other countries, said the Finance Minister on Monday in response to a question asked by Congress leader Shashi Tharoor. He said foreign investment should not be judged only by looking at FIIs and FPIs, which in nature depend on interest rates and they “keep moving up and down”.
“With fairness and fairness, if FDI inflows remain unabated and India is the largest receiver of FDI before Covid and this continues to be significant during Covid and even after, it shows that money coming in Investments are being made in this country to create jobs and opportunities for us and not for FIIs and FPIs.” sitharaman Said in response to the question.
“FIIs and FPIs will come and go. But, today Indian retail investors have proved that no matter what shocks they come and go, it is now taken care of by Indian retailers because of their ability to absorb the shock brought to the Indian market,” He said during question hour.
“We must stand in the House and applaud the Indian retailer, who has put a lot of faith in the markets in India today,” the minister said.
Tharoor, in his question, had urged Sitharaman to explain the respective trend of “persistent” declining foreign investment in India, stating that investors from outside the country have so far withdrawn over Rs 1.14 lakh crore from the Indian market. is of. The veteran leader had also sought answers, what measures has been taken by the government to reverse this situation.
“FPIs and FIIs are obviously going to be very specific in their nature to come and go. But, to be viewed with fairness and impartiality is the inflow of FDI which remains unabated,” said Sitharaman in his reply.
“India is the highest receiver of FDI before covid and it continues to be very significantly during and after covid,” she said.
The minister further said, “It is he who indicates that the money which is coming in is investing in this country, thereby creating employment and possibilities for us, and not by FIIs and FPIs.”
In a clarification to another question, Nirmala Sitharaman said that the GST Council has not recommended reducing the rate of health insurance below 18 per cent, even though its cost has gone up during the pandemic.
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