India's Finance Minister Nirmala Sitharaman announces new steps to attract foreign investment

Finance Minister Nirmala Sitharaman said the government will pursue additional measures to bring more foreign capital into India, describing recent bond‑market initiatives as only the beginning. She noted that the Reserve Bank of India's approval for public‑sector enterprises and banks to raise funds abroad is not the final step, and that the bond market can serve as a key channel for foreign investment, currently limited to government securities.

Sitharaman emphasized the need to maintain ample foreign‑exchange reserves amid external challenges such as tariff changes, commodity‑price volatility, supply‑chain disruptions, rising oil prices and higher insurance costs for vessels transiting the Strait of Hormuz. She highlighted the impact of fertilizer‑market volatility and cited China’s renewed export activity as providing some relief.

The minister also pointed to rapid growth in India's data‑center and Global Capability Center (GCC) ecosystem, which is now expanding beyond major metros to Tier‑2 cities such as Tumakuru and Mangalore. This expansion is expected to generate new jobs, strengthen data security, and boost local economies, with state governments actively collaborating on policy implementation.