Union Finance Minister Nirmala Sitharaman on Monday acknowledged concerns raised by foreign portfolio investors (FPIs) and equity market participants about India's investment environment, saying the government is aware of changing global circumstances and will consider their feedback to sustain economic growth above 7%.
Sitharaman said attracting foreign investment required more than just changes in taxation. She pointed out that India's tax structure was broadly similar in 2023-24, when the country witnessed substantial 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.
The Finance Minister emphasised that India needed adequate capital, particularly equity investments, to maintain its growth momentum. She also indicated that the government was open to engaging with market participants to understand their concerns and address challenges affecting investment flows.
"I wouldn't want to say more at this stage, but I recognise the voice," she said, referring to investor concerns.