India remains the highest receiver of foreign direct investment (FDI), Parliament was informed on Monday. Finance Minister Nirmala Sitharaman said Indian retail investors have created the ability to withstand the shocks caused by outflow of foreign funds from the country’s stock markets.
Continue your sales spree Foreign investors pulled out huge sums for the sixth consecutive month 41,000 crore from the Indian equity market in March on fears of a rate hike by the US Federal Reserve and the deteriorating geopolitical environment amid the Russo-Ukraine war.
it was more than the net withdrawal 35,592 crore in February and 33,303 crore in January.
Foreign investors are withdrawing money from equities for last six months, taking out net 1.48 lakh crore between October 2021 to March 2022.
However, responding to a question posed by Congress member Shashi Tharoor in Lok Sabha, Sitharaman said foreign investment should not be judged by looking only at FIIs and FPIs, which in nature depend on interest rates and they are “increasing”. And keep going up. Down.”
“FIIs and FPIs will come and go. But, today Indian retail investors have proved that even though they come and go, any setbacks can happen now because of their ability to absorb the shock brought by Indian retailers. Indian market,” he said during Question Hour.
“We must stand in the House and commend the Indian retailer who has put a lot of faith in the markets in India today,” he said.
Indicating that foreign investors have pulled their hands 1.14 lakh crore from the Indian market so far, Tharoor had urged the finance minister to explain the worrying trend of “continuously” declining investments by foreign investors.
The Congress member had now also asked the government what measures were being taken to reverse this trend.
He said in his reply, “Clearly FPIs and FIIs are going to be very specific in their nature and go out of their way. But, there is an influx of FDIs to look at with fairness and impartiality which has remained unabated.”
Recently, Sitharaman said that the FDI received during the seven-and-a-half-year rule of the Narendra Modi government is 65% more than the inflow received during the ten-year rule of the Congress party-led UPA government.
In the financial year 2020-21, FDI inflows into India rose to $81.72 billion despite the global economic disruption due to the COVID-19 pandemic
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