Retail investors have shown confidence in Indian equity markets displaying their ability to absorb the shock from outflows of foreign portfolio investors (REITs) recently, as the country remains the top receiver of foreign direct investment (FDI). ) job creators. , Finance Minister Nirmala Sitharaman told Lok Sabha on Monday.
According to data available from custodians, REITs withdrew Rs 1.48 trillion net between October 2021 and March 2022. Market volatility increased in March following the outbreak of war between Ukraine and Russia.
“This (FDI) is what indicates that the money that comes in stays inside this country, creating jobs and opportunities for us. FIIs and REITs may come and go but today Indian retail investors have proven that any shock that may arise is now taken care of due to the shock absorbing capacity that the Indian retailer has brought to the Indian market,” Sitharaman said.
Responding to a question posed by Congressman Shashi Tharoor in Lok Sabha, the Minister said that foreign investments should be assessed not just by looking at FIIs and REITs which by nature are interest rate dependent and they continue to “rise and fall”. ”.
Last week, Sithtaraman told parliament that FDI into the country during the Modi government was $500.5 billion, 65% more than the amount received during the 10 years of the UPA government. , because investors trusted the economic management of the current regime.
“We in the House should stand up and appreciate the Indian retailer who has invested a lot of faith in the markets today in India,” she added.