Picture : ANI / X
Will place restrictions on foreign direct investment (FDI) in the national interest to ensure safeguards because of its location in a highly sensitive neighbourhood, Finance Minister Nirmala Sitharaman said during an interactive session at the Wharton Business School in the US.
“I cannot blindly accept FDI simply because we need investment, unmindful of where it is coming from.
“We want business, we want investment, but we also need some safeguards, because India is located in a neighbourhood that is very, very sensitive,” Sitharaman said.
According to PTI, Sitharaman said that the disclosure norms put in place by the Securities and Exchange Board of India (Sebi) provide information about the ultimate beneficiary.
“Sometimes the ultimate beneficiary is a concern not because of who it is but where it is,” she said.
She noted that many countries have regulations through which they control such investments.
“FDI, otherwise, is welcome, and we have opened it up. Sebi has been very forward-looking in reducing the regulations,” the finance minister added.
Sitharaman indicated that to achieve the growth rate India aims for, it might need $100 billion to meet investment requirements.
Currently, the figure stands in the range of $70–80 billion.
“It is about how much the economy can absorb today. It is improving,” she said.
The finance minister is in Washington, D.C., to attend the annual meetings of the International Monetary Fund and the World Bank.
