Union Finance Minister Nirmala Sitharaman on Monday acknowledged concerns among foreign portfolio investors (FPIs) and equity market participants over India's investment environment, saying the government recognises the changing global circumstances and will consider their feedback as the country seeks to sustain growth above 7 per cent. She was speaking at the Financial Express Leadership Awards 2026, ANI reported.

Source: ANI via Daily Prabhat

>7%Growth rate India seeks to sustain, for which she said equity capital is needed
2023-24Year she cited when, she said, a similar tax structure drew strong foreign inflows
2 Nov 2026Day she addressed the Financial Express Leadership Awards 2026

Sitharaman said taxation was only one aspect of attracting foreign investment and noted that the tax structure was similar in 2023-24, when India recorded strong foreign capital inflows. “Nothing differently was done for drawing investments. But of course, the situation is very different now. Circumstances have changed. Challenges have grown,” she said, acknowledging that net foreign institutional investor outflows had increased, although inflows had started recovering.

Source: ANI via Daily Prabhat

She said India required capital, particularly equity investments, to sustain its growth momentum. While the government had focused in recent years on deepening and widening the bond market, concerns were now being raised about the need for greater support for equity markets, she noted. “I wouldn't want to say more at this stage, but I recognise the voice,” she said, referring to investor concerns, and she told market participants she would consider the issues they raised over equity taxation amid foreign investment outflows, CNBC-TV18 reported.

Source: CNBC-TV18 via TradingView

On domestic conditions, Sitharaman said she expected India's consumption story to remain intact, citing the latest GST collection figures as an indication of sustained demand, and said the next-generation GST reforms had made consumption and demand more visible, encouraging companies to consider fresh investments. She said private sector investment was picking up, although companies were choosing sectors selectively, and she highlighted the need to bridge the gap between the skills of young graduates and industry requirements. She also defended the production-linked incentive (PLI) approach, saying companies received incentives based on additional production.

Source: ANI via Daily Prabhat

On the Tata Group dispute

Asked about the ongoing dispute within the Tata Group, Sitharaman urged the group's leadership to resolve the matter internally and amicably. “I think these are very delicate matters, and matters where a lot of commercial and business acumen will have to work. Business cordiality will have to work,” she said, according to CNBC-TV18's report of the Financial Express Leadership Awards. Her remarks on investor feedback come on a day when the market regulator's reported pre-Budget proposal to scrap long-term capital gains tax for foreign investors was also in focus.

Source: CNBC-TV18 via TradingView

Earlier on Monday, at an HSBC event in Mumbai, Sitharaman said the government would keep supporting growth through capital expenditure until private investment picks up. Read: Sitharaman's capex and fiscal prudence remarks