India’s inflation is at a manageable level and the Reserve Bank of India’s latest monetary policy which includes raising interest rates by 50 basis points has sent a “very positive message to the market”, Finance Minister Nirmala Sitharaman said on Saturday.
More than 70% of foreign portfolio investors (FPIs) who had left the Indian stock market in the months leading up to July had returned in the last two months, the minister said, adding that India is now entering a strong economic era. Is. action.
“Till July, you had a lot of FPIs flowing out of India, moving away from India. And people thought, ‘Oh, this is a sign that the economy is about to be in trouble’. As many or even more have started coming back since August and till September, more than 70%, all of whom went out, have equally come back,” she said.
Noting that this will be a period ‘unlike any other time’ for the economy and businesses, with investments in manufacturing and services sectors, Ms Sitharaman said a lot of money will flow into India and there could be multiple mergers and acquisitions. . Be expected.
“This is going to be an era of entrepreneurship to build the Indian economy, for a lot of money to flow into India. The government is actively engaged with sovereign funds, large funds that can come and invest in India,” she said, pointing to the interest shown by global investors in schemes like production-linked incentives.
“I think you’re going to have a lot of mergers and acquisitions. There’s also going to be mergers and acquisitions because this is an economy that’s seen as the best place around the world, because we’ve seen a certain growth and stand as the fastest growing economy in the world. And so, you are going to have a lot of investor interest,” she explained.
Speaking at the 6th Annual Day of the Insolvency and Bankruptcy Board of India (IBBI), Ms Sitharaman said the ‘era of strong economic activity’ would require regulators to be stronger as well.
“We need a lot of good professionals who are going to help the economy understand how to handle liquidation, insolvency, bankruptcy, all of them, where necessary, in a very efficient and timely manner. ,” she concluded.