Speaking at the Mindmine Summit 2026, Sitharaman said India has performed reasonably well on the economic front and continues to benefit from strong domestic demand. However, she cautioned against complacency, noting that both global and domestic challenges require constant assessment and policy responsiveness.
Addressing concerns regarding foreign institutional investor holdings and capital flows, the Finance Minister said India needs greater participation from foreign investors and that policymakers are pursuing a calibrated strategy to facilitate investments. She highlighted recent initiatives aimed at making India’s bond market more attractive to overseas investors.
According to Sitharaman, the government and the RBI have introduced policy measures under the Fully Accessible Route (FAR) framework to simplify compliance requirements and provide favourable withholding tax treatment, thereby improving investor confidence and market accessibility. She described these steps as the beginning of a broader effort to encourage foreign capital inflows.
“Certainly, that’s not the end of the story. We’ll be doing more. We recognize we need more foreign capital to come in,” Sitharaman said.
The Finance Minister also referred to the RBI’s decision permitting public sector undertakings and banks to raise funds from overseas markets through a structured framework. She noted that currency hedging costs under the arrangement would be borne by the RBI, enabling institutions to access international capital markets more efficiently.
“As a result, the banks can now go unfettered to raise capital from outside,” she said.
Highlighting India’s economic resilience, Sitharaman stated that the country’s vast domestic market and rising consumption levels provide a strong buffer against global economic uncertainties. At the same time, she pointed to several persistent risks, including volatility in crude oil prices, supply chain disruptions, geopolitical tensions, rising insurance costs, and weather-related challenges that continue to affect economies worldwide.
The Finance Minister stressed that economic growth alone is insufficient and must be supported by strong institutions, effective policy frameworks, and efficient implementation mechanisms. She underscored the need for continuous evaluation of performance and identification of areas requiring further improvement.
“I know that our country is doing reasonably well, but we must continue to evaluate our performance carefully and identify areas where further improvement is needed,” she said.
Sitharaman further emphasized that policy frameworks must remain robust and adaptable in response to an evolving global economic landscape. While acknowledging strong growth across several sectors, she noted that industries involving complex and intermediate products and services continue to require focused policy attention.
She said policymakers must continue pursuing structural reforms and innovative solutions to address long-standing challenges and ensure that the benefits of economic growth reach all sections of society.
Referring to climate-related concerns, the Finance Minister said the government is preparing for the possibility of a weaker monsoon due to the El Niño phenomenon. She warned that uneven rainfall patterns could create challenges for different regions across the country.
“Some areas are going to be dry and some others are going to have excessive rain. That’s a year-long concern. But this year, because of El Niño, I think we are preparing for a not-so-good monsoon,” she said.
Sitharaman concluded by stating that the government remains vigilant regarding emerging economic developments and is committed to strengthening India’s long-term growth prospects through sustained reforms, policy support, and institutional resilience. Her remarks underscored the government’s focus on attracting foreign investment while simultaneously preparing the economy to navigate global uncertainties and climate-related challenges.
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