India’s inflation is at a manageable level and the latest monetary policy of the Reserve Bank of India which includes a 50 basis points hike in interest ratesFinance Minister Nirmala Sitharaman on Saturday said it has sent “a very positive message to the market”.
The Finance Minister said that over 70% of foreign portfolio investors (FPIs) who had left the Indian stock market in the months leading up to July have returned in the last two months, adding that India is now entering a strong economic era. Used to be. 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 is going to be a period ‘unlike any other time’ for the economy and businesses with investment and manufacturing as well as service sectors, Ms Sitharaman said that a lot of money will flow into India and there will be many mergers. There may be more 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, 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.