Foreign investment will increase in India, Finance Minister told how this work will be completed

Finance Minister Nirmala Sitharaman said on Monday that more steps will be taken to attract foreign capital in the Indian market. Speaking at the Hero Mindmine Summit 2026 here, he said measures like exemption from interest and capital gains tax on investments made by foreign investors in government securities (G-Secs) are the first step towards attracting back foreign capital.

He said, this is not the end of the story and more steps will be taken. We believe that we need more foreign capital. reserve Bank of India On June 5, it had allowed banks to use their currency swap facility for foreign currency non-resident (bank) deposits with a tenure of three to five years to exchange US dollar deposits with the RBI and manage currency risk.

It is necessary to deal with challenges

Apart from this, concessional foreign currency swap facility has also been provided to encourage public sector companies to raise external commercial borrowings (ECB) to increase foreign capital inflow, which will remain in force till September 30. Sitharaman said that under the framework announced by RBI, the cost of currency risk will be borne by RBI, due to which banks will be able to raise their resources without any hindrance. He also said that the Indian economy is facing severe pressure due to import of raw materials, crude oil and fertilizers. The Union Minister said that the global situation is changing every week and new challenges are emerging. Therefore, the country will have to be prepared for every such emergency.

What is the current situation?

In fact, amid increasing geopolitical tensions, concerns about the growth of the global economy and continuous weakness in the rupee, foreign investors sold more than Rs 62,853 crore from the Indian stock market in the first fortnight of June. With this latest withdrawal, the total withdrawal of FPI from Indian stocks so far in 2026 has increased to Rs 2.87 lakh crore. This is more than the Rs 1.66 lakh crore withdrawn in the entire 2025. These figures have come from the data of National Securities Depository Limited (NSDL).