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Informist, Wednesday, Aug. 19, 2026

 

--Fin min official: Foreign capital has not been very forthcoming off late 

--CONTEXT: Dept of econ affairs joint secy Tiwari's comments at a conference 

 

MUMBAI – Foreign capital has not been as forthcoming as required in recent times, Alok Tiwari, joint secretary in the Department of Economic Affairs under the Ministry of Finance, said Wednesday. Tiwari emphasised that India needs both domestic and overseas capital to sustain its growth and emerge as an important financial centre.

 

"We need domestic capital as well as foreign capital," Tiwari said at a capital markets conference organised by the Federation of Indian Chambers of Commerce and Industry here. He said attracting foreign capital remains a work in progress, with the government working to make the flow of overseas investments smoother.

 

Tiwari said the capital market has undergone "dramatic transformation" in recent years, driven by rising investor participation, stronger regulatory institutions, and the modernisation of the legal and statutory framework. He highlighted the "democratisation of the capital markets" as a key achievement, with millions of first-time investors entering the market.

 

Domestic institutions, mutual funds, and other investors have increasingly been powered by retail money, he said. "The power of retail money has taken over the market," Tiwari said, describing this as the outcome of a conscious policy approach. However, he flagged the need to deepen the corporate bond market, saying it does not have the level of participation in the secondary market that it should. Developing the corporate bond market remains a priority, he said.

 

Tiwari said the government is also working to facilitate foreign investment by streamlining the statutory architecture. He said the relevant foreign exchange management and investment regulations are currently under public consultation with the Reserve Bank of India, with market participants providing comments.

 

Tiwari also said a committee has been constituted to develop a framework for market-making in corporate bonds, while authorities are working on proposals to improve the functioning and participation in the securities market.  End

 

Reported by Kabir Sharma

Edited by Rajeev Pai

 

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