India delivering good returns on investments: FM Sitharaman on selling activities of FIIs

Finance Minister Nirmala Sitharaman on Monday stated that India is providing substantial returns to investors who are booking profits. Addressing a query regarding the selling activities of foreign institutional investors (FIIs), Sitharaman mentioned that India offers an environment where investments are generating favorable returns.

“The Indian economy today has an environment in which investments are earning good returns and profit booking is also taking place,” said FM Sitharaman to reporters in a post-Budget interaction in Mumbai.

FIIs started selling stock extensively since October 2024. They have sold a total of Rs 1.7 lakh crore or $20 billion of domestic stocks. In January 2025 too, they remained net sellers in virtually all sectors except chemicals, media and telecom. In January FIIs sold on 22 out of 23 trading days. February is also expected to follow the trend.

Meanwhile, Finance Secretary Tuhin Kanta Pandey noted that during periods of global volatility, such as the current situation, FIIs often return to their countries of origin, primarily the United States. He emphasised that India remains the fastest growing major economy and is expected to continue its growth trajectory.

The minister said that in the last three budgets, the Indian government took significant steps to improve the business environment for MSMEs. She said that it would be incorrect to say that the focus has now shifted from capex to consumption, and added that the public sector has put their own resources of close to Rs 4.8 lakh crore to pull up apex. 

FM Sitharaman said that the centre expects the state governments to come forward to ease compliance-related regulations towards ease of doing business.

On the Budget 2025 announcements, she said that the government is very conscious about timelines and wants to ensure that each announcement of the budget hits the ground at the right time. About the Income-Tax Act, she said that a select committee would be looking into the details. The minister said that 60,000 inputs came online towards making this bill. 

FM Sitharaman said, “I put a lot of interest in language simplification so that a person can understand.” She also asked the budget makers to bring out the FAQs on everything that they do so that people can read it before the media publishes it in the newspaper. 

Sitharaman explained that the government's supply-side measures, along with the Reserve Bank's demand-side initiatives, are effectively working together to manage the rise in prices and inflation.