Centre taking more measures to attract foreign capital inflows: FM

NEW DELHI : Finance Minister Smt Nirmala Sitharaman on Monday said the measures announced by the RBI and government to boost foreign fund inflows are the “first step” to bring back foreign capital and indicated that more steps could be in the offing.

Sitharaman participated in a fireside chat at the Mindmine Summit 2026 on Monday, June 15, 2026, with the session streamed live for audiences across the country. The annual summit, which brings together corporate leaders, policymakers and investors, provided a platform for the Finance Minister to engage directly with the private sector on pressing economic matters.

Sitharaman also said that there is a need to be prepared for exigencies arising out of the evolving global situation as the Indian economy is facing “severe strain” from import of key raw materials, as well crude oil and fertilisers.

Speaking at the Mindmine Summit 2026, Sitharaman said an analysis by the RBI and the government has shown that the bond market can be a “very good magnet” to absorb foreign capital.

Accordingly, to reduce compliance burden for foreign investors in Government Securities (G-Secs), the government on June 5 expanded the list of specified securities under the Fully Accessible Route (FAR) to also include new issuances in G-Secs.

Besides, income tax exemption was given to income from interest and capital gains made by FPIs from investments in G-Secs.

Sitharaman said these measures are the “first step” towards drawing foreign capital back.

“Although at the moment it’s confined to the bond market, certainly that’s not the end of the story. There will be more. We recognise, we need more foreign capital to come in,” Sitharaman said.