India continues to remain highest receiver of FDI: FM
India continues to remain the highest receiver of the FDI, and the Indian retail investors have created the capacity to absorb the shock due to outflow of foreign funds from the country’s stock markets, Finance Minister Nirmala Sitaraman told Lok Sabha, responding to a question by Congress member Shashi Tharoor.
NEW DELHI: “We must appreciate the Indian retail investors and their shock absorbing capacity bought into the Indian markets. Investment will have to be gauged not just looking at FPIs and FIIs which by very nature depend on the interest rate and also keep moving ups and downs,” said the FM.
She added FPIs and FIIs can be very tempted by interest rates elsewhere and prospects anywhere else. “So FPIs and FIIs are obviously going to be coming in and going out because of their typical nature”, Sitharaman told the House.
“What must be considered is the inflow of foreign direct investment,” she said, adding the FDI continued during and subsequently thereafter.