The government may consider additional measures to attract foreign capital, Finance Minister Nirmala Sitharaman indicated on June 15, saying recent tax relief announced for sovereign debt was “not the end of the story”.
“We believe the bond market can be a good way to absorb the capital coming in. As of now we have done it only for government securities,” she said. “Certainly, that is not the end of story. We recognise we need more foreign capital coming in,” Sitharaman added at the Mindmine Summit 2026 in New Delhi.
The Finance Minister said India sees the bond market as an important channel to absorb overseas capital but noted that reforms so far have been limited to government securities.
“Between RBI, government we have analysed and taken steps towards capital gains tax, withholding tax,” Sitharaman said at the Mindmine Summit 2026.
Earlier this month, the Centre exempted foreign portfolio investors (FPIs) from paying capital gains tax on gains earned from the sale, exchange or transfer of government securities, while also removing the 20 percent withholding tax on interest income from such investments. Before the change, foreign investors paid 12.5 percent long-term capital gains tax on G-secs held for more than 12 months and a 20 percent withholding tax on interest income.
Sitharaman also said domestic retail participation had helped support equity markets despite global volatility. “Our own participation in stock market has buoyed it considerably,” she said.
Forex reserves in focus
The Finance Minister also flagged rising insurance costs and shipping risks linked to crude imports amid geopolitical tensions.
“Not only the price of crude which is a challenge, but insurance cover and risk of crude vessels passing through the Strait also high,” Sitharaman said.
She added that India must maintain adequate foreign exchange reserves to manage rising external demand.
“India’s Exchange reserve needs to be adequate to meet the growing demand,” she said.
Sitharaman, however, said India’s large domestic market remains a source of resilience.
“India has a large domestic market with consumption going up which is a comfort,” she said, while adding that “the import of items is under severe strain”.
Govt preparing for weaker monsoon
On agriculture, Sitharaman said the government was preparing for a weaker monsoon this year due to El Niño conditions but did not foresee food shortages because of sufficient buffer stocks.
“This year because of El Nino, we are preparing for not such a good monsoon,” she said.
“There shouldn’t be a food shortage because of buffer stock,” Sitharaman added.
The Finance Minister said fertiliser availability for the kharif season remained adequate.
“For kharif we have adequate fertiliser, but we need money for Rabi tendering,” she said, adding that “the supply challenge of fertiliser was offset with China coming back to the market”.
States framing GCC, data centre policies
Sitharaman also said states were increasingly introducing policies for data centres and Global Capability Centres (GCCs) due to their employment potential.
“States are coming up with policies on data centres, GCCs as they are job generating,” she said.
“Centre engaging with states to make sure the data centres and GCC policies are understood,” Sitharaman added.
